A historic milestone arrives in November 2026: the full retirement age (FRA) will reach 67 for those born in 1960 or later. This marks the completion of a 42-year-long shift that Congress initiated in 1983 when it raised the retirement age from 65 to 67.
Understanding what this means for your benefits could significantly impact your retirement income for decades to come.
What Is Full Retirement Age?
Full retirement age is when you qualify to receive 100% of your earned Social Security benefits. Claim earlier, and your benefits are permanently reduced. Wait longer, and they increase through delayed retirement credits.
For those born in 1960 or later, the FRA is now firmly set at 67. Those born in 1959 have an FRA of 66 and 10 months, which took effect in November 2025.
How Early Claiming Affects Your Benefits
You can still claim Social Security as early as age 62, but the penalty for early claiming has grown as the FRA has risen. Here's what claiming at 62 looks like with an FRA of 67:
- At 62: You receive only 70% of your full benefit
- At 63: You receive 75% of your full benefit
- At 64: You receive 80% of your full benefit
- At 65: You receive 86.7% of your full benefit
- At 66: You receive 93.3% of your full benefit
- At 67 (FRA): You receive 100% of your full benefit
These reductions are permanent. If your full benefit at 67 would be $2,071 (the 2026 average), claiming at 62 would reduce that to approximately $1,450 per month—a difference of $621 monthly for the rest of your life.
The Power of Delayed Claiming
Waiting past your FRA earns delayed retirement credits of 8% per year until age 70. For someone with an FRA of 67, that means:
- At 68: 108% of your full benefit
- At 69: 116% of your full benefit
- At 70: 124% of your full benefit
Using the same $2,071 average benefit, waiting until 70 would increase your monthly payment to approximately $2,568—nearly $500 more per month than claiming at FRA.
2026 Earnings Test Limits
If you claim Social Security before your FRA while still working, earnings limits apply. For 2026:
- Under FRA all year: Benefits reduced by $1 for every $2 earned above $24,480
- Year you reach FRA: Benefits reduced by $1 for every $3 earned above $65,160 (only counting earnings before your birthday month)
- At FRA or older: No earnings limit—you keep all benefits regardless of income
These withheld benefits aren't lost forever. The Social Security Administration recalculates your benefit at FRA to credit you for the months benefits were withheld.
2026 Social Security COLA
The 2.8% cost-of-living adjustment for 2026 brings the average monthly retirement benefit to $2,071, up $56 from $2,015 in 2025. Married couples receiving benefits will see an average increase of $88, bringing their combined monthly benefit to $3,208.
However, the Medicare Part B premium increase of $17.90 (rising to $201.90 from $185 in 2025) effectively reduces the net COLA gain to about $38 for many retirees.
Making Your Claiming Decision
The right claiming age depends on your individual circumstances. Consider claiming early if you have health concerns, need the income, or have a shorter life expectancy. Consider waiting if you're in good health, have other income sources, or want to maximize survivor benefits for a spouse.
The break-even point—when total lifetime benefits from waiting exceed total benefits from claiming early—typically falls in your early 80s. Given average life expectancies, many retirees benefit from waiting.
The Bottom Line
With full retirement age now at 67, the math of Social Security claiming has shifted. Early claiming carries steeper permanent penalties, while delayed claiming offers substantial rewards. Before making this irreversible decision, consider consulting with a financial advisor who can help you analyze your specific situation, including spousal benefits, survivor benefits, and your overall retirement income plan.
Sources: Social Security Administration, AARP, Kiplinger, The Motley Fool