Social Security Retirement Age 2026 – What the Change to 67 Means for Your Benefits

For decades, age 65 was considered the golden standard for retirement in the U.S., often matching Medicare eligibility and the end of full-time work. But the landscape has shifted. Beginning in 2026, the full retirement age (FRA) for Social Security will officially be 67 for those born in 1960 or later.

This change, decades in the making, will impact when and how millions of Americans choose to retire — and the amount they receive for the rest of their lives.

New Social Security Retirement Age

The final step in the FRA increase, originally set in motion by the 1983 amendments, takes effect in 2026.

• Born in 1960 or later – FRA is 67
• Born in 1959 – FRA is 66 years and 10 months (effective 2025)

You can still claim benefits as early as 62, but your monthly payments will be reduced permanently — up to 30% less if you file five years early. Waiting beyond FRA increases benefits by 8% per year until age 70, potentially boosting payouts by up to 32%.

Why This Matters

While a two-year increase from the original age 65 may seem small, it can amount to tens of thousands of dollars over a 20–30-year retirement. Claiming too early can lock in lower payments for life, while waiting can significantly increase lifetime income.

Early Retirement and FRA

If you want to retire before 67, you’ll need a plan to cover the gap until full benefits start. Some strategies include:

• Phased retirement – Reduce work hours while keeping partial income and benefits
• Cash reserves – Maintain 18–24 months of living expenses in a high-yield savings account
• Home assets – Rent out a room, basement, or parking space for extra monthly income
• Part-time work with benefits – Some companies offer health insurance for part-time staff

Smart Withdrawal

Your retirement income isn’t just about timing — it’s also about how you withdraw and manage funds:

• Use taxable accounts first to let retirement accounts grow longer
• Tap Roth IRA contributions without penalties or taxes if needed
• Lower your MAGI to qualify for Affordable Care Act subsidies before Medicare starts at 65
• Generate small side income from freelancing, tutoring, or seasonal work

Could the Retirement Age Rise Again?

Although the FRA increase to 67 will be complete in 2026, lawmakers have discussed raising it further — possibly to 68 or 69 in future decades. While no law has passed yet, planning for potential changes is wise.

Ways to prepare:

• Build emergency savings
• Stay open to part-time or consulting work
• Understand delayed retirement credits and their long-term value
• Create a flexible financial plan that can adapt to policy changes

Key Takeaways

• FRA reaches 67 in 2026 for those born in 1960 or later
• Claiming early permanently reduces benefits
• Delaying past FRA can increase monthly payments up to 32%
• Planning for the years between 62 and 67 is crucial to avoid financial gaps

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