In November 2026, Social Security's full retirement age (FRA) will reach 67 for the first time in the program's history. This marks the completion of a 42-year transition initiated by the 1983 amendments to the Social Security Act. If you were born in 1960 or later, here's what you need to know.
What Is Full Retirement Age?
Full retirement age is when you become eligible to receive 100% of your Social Security retirement benefit. Claim earlier, and your benefit is permanently reduced. Wait past your FRA, and your benefit grows by 8% per year until age 70.
For decades, the FRA was 65. The 1983 reforms gradually increased it to address the program's long-term funding challenges. Those born in 1937 or earlier kept the age-65 threshold. For everyone born in 1960 or later, the FRA is now 67.
How Early Claiming Affects Your Benefits
You can still begin receiving Social Security as early as age 62, but claiming five years before your FRA of 67 results in a 30% permanent reduction in benefits. Here's how the math works:
- Claim at 62: 30% reduction (receive 70% of full benefit)
- Claim at 63: 25% reduction (receive 75% of full benefit)
- Claim at 64: 20% reduction (receive 80% of full benefit)
- Claim at 65: 13.3% reduction (receive 86.7% of full benefit)
- Claim at 66: 6.7% reduction (receive 93.3% of full benefit)
- Claim at 67: Full benefit (100%)
These reductions are permanent. If you claim at 62, you'll receive the reduced amount for the rest of your life, adjusted only for annual cost-of-living increases.
The Advantage of Delayed Claiming
For those who can afford to wait, delaying benefits past age 67 provides an 8% annual increase until age 70. This means someone who waits until 70 receives 124% of their full benefit amount.
For 2026, the maximum Social Security benefit at full retirement age is $4,152 per month. For someone who delayed until age 70, the maximum benefit rises to $5,251 monthly—a difference of over $13,000 per year.
2026 Earnings Limits If You're Still Working
If you claim benefits before reaching full retirement age and continue working, Social Security applies an earnings test:
- Under FRA all year: Benefits are reduced by $1 for every $2 earned above $24,480
- Year you reach FRA: Benefits are reduced by $1 for every $3 earned above $65,160 (applies only to earnings before the month you reach FRA)
- At FRA and beyond: No earnings limit applies
Once you reach full retirement age, the earnings test disappears, and any benefits previously withheld are recalculated into higher future payments.
The 2026 COLA and Medicare Impact
Social Security beneficiaries received a 2.8% cost-of-living adjustment (COLA) for 2026, increasing the average retirement benefit by about $56 per month. However, Medicare Part B premiums rose to $201.90 from $185, which reduces the net increase to approximately $38.10 for those enrolled in both programs.
Planning Considerations
Your optimal claiming age depends on several factors:
- Health and life expectancy: If you have a shorter life expectancy, claiming earlier may make sense financially
- Spouse's benefits: Survivor benefits are based on the higher earner's benefit, so delaying can protect a surviving spouse
- Other income sources: Those with pensions, savings, or continued employment may afford to delay
- Cash flow needs: Sometimes claiming early is necessary regardless of the math
The Bigger Picture
With Social Security's trust fund projected to be depleted before 2033, future benefit adjustments remain possible. Congress has less than seven years to address the funding gap, or benefits could face automatic cuts of roughly 20-25%.
Understanding how full retirement age affects your benefits is essential for making informed claiming decisions. Whether you claim at 62 or delay until 70, knowing the trade-offs helps you build a retirement income strategy that fits your circumstances.
Sources: Social Security Administration, AARP, Kiplinger, NewsNation