A historic transition in Social Security reaches its conclusion this year. In November 2026, the full retirement age (FRA) officially reaches 67 for Americans born in 1960 or later, completing a gradual shift that began with the 1983 amendments to the Social Security Act.
For anyone planning retirement today, understanding this milestone is essential for making informed decisions about when to claim benefits.
What Is Full Retirement Age?
Full retirement age is when you become eligible for 100% of your Social Security benefit, known as your primary insurance amount (PIA). For decades, FRA was 65. But reforms enacted in 1983 began gradually increasing it for workers born after 1937.
For those born in 1960 or later, FRA is now permanently set at 67. This two-year increase from the original age 65 effectively reduces lifetime benefits for workers who claim at the same age their parents did.
How Claiming Age Affects Your Benefits
The age you start collecting Social Security has a significant impact on your monthly payment:
Claiming at 62 (Early): Your benefits are permanently reduced. For someone with an FRA of 67, claiming at 62 means receiving only 70% of your full benefit amount. That reduction lasts for life.
Claiming at 67 (Full Retirement Age): You receive 100% of your calculated benefit with no reductions or penalties. Earnings from continued work no longer trigger benefit withholding.
Delaying Until 70: Your benefit increases by 8% for each year you wait past FRA. Someone who delays from 67 to 70 would receive 124% of their full benefit amount permanently.
To illustrate: if your full benefit at 67 is $2,000 per month, claiming at 62 would reduce it to approximately $1,400. Waiting until 70 would increase it to $2,480.
The Breakeven Calculation
A common question is whether delaying benefits makes financial sense. The math depends largely on longevity.
Comparing claiming at 67 versus 70, most analyses show the breakeven point occurs in the early 80s. If you live beyond that age, delaying typically results in higher lifetime benefits. According to Social Security data, a 65-year-old today has roughly a 50% chance of living past 84.
However, breakeven calculations don't account for all factors. Those who need income immediately, have health concerns, or want to invest the money elsewhere may reasonably choose to claim earlier.
Key Considerations for Married Couples
For married couples, the claiming decision becomes more complex. Surviving spouses can receive either their own benefit or their deceased spouse's benefit, whichever is higher.
This means if you're the higher earner, delaying your claim ensures your spouse receives a larger survivor benefit after your death. For many couples, having the higher earner wait until 70 provides valuable insurance against longevity risk.
Working While Receiving Benefits
Many Americans continue working while collecting Social Security. If you claim before FRA and earn above certain thresholds, your benefits may be temporarily reduced.
In 2026, Social Security withholds $1 for every $2 earned above $24,480 if you won't reach FRA this year. In the year you reach FRA, the threshold rises to $65,160 with only $1 withheld per $3 earned above that amount.
Once you reach full retirement age, earnings no longer affect benefits. Any amounts previously withheld are recalculated and added back to future payments.
Don't Forget Medicare
Even if you delay Social Security benefits, you should still enroll in Medicare within three months of turning 65. Waiting longer can result in permanently higher premiums for Medicare Part B and Part D coverage.
The Bottom Line
With full retirement age now permanently at 67, today's workers face a different landscape than previous generations. The decision of when to claim requires careful consideration of your health, financial needs, other income sources, and family situation. For most people, waiting beyond 62 provides significantly higher lifetime benefits, but individual circumstances should drive the decision.
Sources: Social Security Administration, Charles Schwab, AARP, Northwestern Mutual, Consumer Financial Protection Bureau