Millions nearing retirement must now adjust plans as the Full Retirement Age rises to 67 for everyone born in 1960 or later, ending a four‑decade phase‑in.
Americans who expected to tap Social Security at 66 have one more year to wait. Beginning in 2026, every worker born in 1960 or later must reach age 67 to receive 100 percent of their benefit, capping the gradual increase first approved by Congress in 1983. The change reflects longer life spans and seeks to shore up the trust fund’s finances.
First, what exactly is changing—and who feels it most? People born in 1959 still qualify for full benefits at 66 years 10 months. Those born on or after January 1, 1960 must wait the full 67 years. Claim earlier and the penalty is steep: filing at 62 locks in roughly 70 percent of your earned benefit for life.
What shifting the full retirement age to 67 means for workers planning a 2026 exit
The extra 12 months can upend carefully built timetables. A retiree expecting to leave the workforce at 66 could lose nearly one‑third of a monthly check by claiming early instead of waiting for the new FRA. On the other hand, delaying past 67 still yields an 8 percent credit each year until age 70—an option worth weighing if you enjoy good health and have other income streams. Below, a quick reference: filing age versus lifelong benefit
| Age you first claim | % of full benefit you receive | Permanent effect |
|---|---|---|
| 62 (earliest) | 70 % | Largest cut |
| 64 | 80 % | Significant cut |
| 66 | 93 % | Moderate cut |
| 67 (new FRA) | 100 % | No cut |
| 70 (latest credit) | 124 % | Maximum boost |
Note: Percentages assume birth year 1960 or later.
Strategies to offset the reduced benefits from early Social Security claims
- Review your personalized statement each year to track earnings history and projected payouts.
- Use the SSA Retirement Estimator or online calculators to model scenarios—what happens if you work part‑time longer, for example?
- Coordinate claiming ages with a spouse to maximize household income; sometimes one spouse files early while the other delays.
- Consider bridging the gap with savings or part‑time work rather than locking in a smaller check forever.
Wondering whether waiting truly pays off? A simple rule of thumb is the “break‑even” age—usually late 70s—when total dollars received by delaying surpass those from claiming early. If you expect a long retirement, patience often wins.
The final step to a 67‑year full retirement age arrives in 2026, closing the door on age‑66 benefits. Future retirees should revisit budgets, run fresh projections, and decide whether to work longer, draw down savings, or accept a smaller Social Security check. Careful planning now can help ensure steadier income later.