The Social Security Administration (SSA) has confirmed that starting in 2026, the full retirement age (FRA) will officially become 67 for anyone born in 1960 or later.
This marks the final stage of a gradual policy shift first initiated by the 1983 Social Security Amendments, which raised the FRA from 65 to 67 in small steps over decades.
This change will affect millions of Americans approaching retirement, influencing how much they receive monthly depending on when they claim benefits. Understanding these changes is crucial for planning your future income.
Official List of New FRA Payout Changes by Birth Year
The table below shows the full retirement age (FRA) based on your birth year and how it impacts your benefit eligibility starting in 2026:
| Birth Year | Full Retirement Age (FRA) |
|---|---|
| 1960 or later | 67 years |
| 1959 | 66 years, 10 months |
| 1958 | 66 years, 8 months |
| 1957 | 66 years, 6 months |
| 1956 | 66 years, 4 months |
| 1955 | 66 years, 2 months |
| 1943–1954 | 66 years |
| 1942 or earlier | 65 years or lower |
Note: Those born on January 1 should refer to the previous year for FRA calculations.
How Claiming Age Affects Your Social Security Payout
The age at which you claim your benefits significantly affects your monthly payments. Below is an example based on a full benefit of $1,800 at FRA:
| Claiming Age | % of Full Benefit | Monthly Payment |
|---|---|---|
| 62 (Earliest) | 70% | $1,260 |
| 65 | 87% | $1,560 |
| 67 (FRA) | 100% | $1,800 |
| 70 (Maximum) | 124% | $2,323 |
- Claiming at 62 leads to about a 30% permanent reduction.
- Delaying past 67 increases payments by about 8% per year until age 70.
- After 70, no further increases are applied.
Why the FRA Was Raised to 67
This shift stems from the 1983 Social Security Amendments, created during a financial crisis to prevent the program’s insolvency. The change was gradually implemented from 1991 through 2025, increasing the FRA by two-month increments each year.
The main reasons behind the change:
- Longer life expectancy: Americans now live 20+ years longer than when Social Security began in 1935.
- Shrinking worker-to-beneficiary ratio: Dropped from 42:1 in 1945 to 2.7:1 today, stressing the trust fund.
- Financial sustainability: Reduces the long-term funding gap projected to deplete the OASI Trust Fund by 2034.
What This Means for Your Retirement Strategy
Even with the new FRA, Social Security is under financial strain. If no reforms are made, benefits could face a 20% automatic cut in 2034 to match payroll tax revenue. Lawmakers are considering:
- Raising payroll taxes
- Adjusting benefit formulas
- Pushing the FRA even higher (possibly 68 or 69)
Key steps for workers and retirees:
- Plan early and consider your ideal claiming age
- Build personal savings and diversify income
- Delay claiming if possible to maximize monthly payments
- Track SSA announcements for future policy updates
The new full retirement age of 67 becomes official in 2026, reshaping how and when millions of Americans will claim Social Security.
Understanding these payout changes—and how early or delayed claiming affects your monthly income—is critical to protecting your financial future as the system faces long-term funding challenges.
FAQs
When does the new retirement age of 67 take effect?
It applies to everyone born in 1960 or later and will be fully implemented starting in 2026.
How much do I lose if I claim Social Security at 62?
You will lose about 30% of your full benefit amount permanently compared to waiting until 67.
Can delaying Social Security beyond 67 increase my benefit?
Yes. Benefits grow about 8% for each year you delay after 67, up to age 70.
