With the Social Security Administration confirming a significant shift in the Full Retirement Age (FRA), the retirement landscape for millions of Americans is about to change. Starting in 2026, the new rule will make 67 the standard age to receive full Social Security benefits for anyone born in 1960 or later. This marks a departure from the longstanding retirement framework and signals a broader trend: Americans may need to prepare for longer working lives.
Let’s break down what this change means and how it could impact your financial future.
What Is Changing About the Full Retirement Age?
The Full Retirement Age is the point at which individuals can receive 100% of their earned Social Security benefits based on lifetime contributions. Historically, while early retirement has been available at 62, the FRA has varied slightly by birth year but has generally been lower than 67.
Effective January 1, 2026, the FRA will officially rise to 67 for everyone born in 1960 or later. This means:
| Birth Year | New Full Retirement Age |
|---|---|
| 1959 or earlier | 66 years + some months |
| 1960 or later | 67 years |
The reason for this adjustment? Americans are living longer, and the Social Security system is under pressure. By raising the FRA, the SSA aims to help preserve the program’s long-term viability.
Can You Still Retire at 62?
Yes—but there’s a catch. Retiring at 62 is still allowed, but if you start claiming benefits at that age, you’ll only receive about 70% of your full benefit. That reduction is permanent.
On the flip side, if you delay retirement past age 67—up to age 70—you can earn delayed retirement credits, boosting your monthly check by as much as 24% over the standard FRA benefit.
Why This Matters for Your Retirement Plan
The change in FRA makes proper retirement planning even more important. If you were born in 1960 or later, here’s how your choices will impact your benefits:
| Age You Begin Collecting | Estimated Benefit (as % of Full) |
|---|---|
| 62 | ~70% |
| 67 (new FRA) | 100% |
| 70 | ~124% |
Those in good health or with other sources of retirement income may benefit from delaying benefits as long as possible. But others may need to tap into benefits earlier due to health issues, job availability, or financial necessity.
Mistakes to Avoid with Social Security
- Claiming Too Early – This locks you into lower monthly payments for life.
- Ignoring Life Expectancy – Many Americans underestimate how long they’ll live, leading to early claims and reduced lifetime income.
- Failing to Plan – Assuming Social Security alone will be enough can be a costly mistake.
With the FRA set to rise and benefits becoming more valuable the longer you wait, now is a good time to revisit your retirement timeline.
How to Prepare for the 2026 Change
Here are practical steps to take now:
- Verify Your Eligibility: You need 40 work credits (roughly 10 years of work where Social Security tax was paid) to qualify.
- Understand Your Benefit Timeline: Use the SSA’s calculators to estimate your benefit at various ages.
- Anticipate Further Changes: Policymakers could consider raising the FRA again in the future, so build flexibility into your long-term plans.
What’s Next?
As of January 1, 2026, the new FRA of 67 will be the law of the land for future retirees. This change will affect when and how much you receive from Social Security. For those aiming for larger monthly checks—up to $5,000 or more for high earners—the key takeaway is simple: wait if you can.
The bottom line? Start thinking beyond just when to retire—and focus on how to retire with enough.
FAQs
Can I still retire at 62 under the new rules?
Yes, but you’ll receive only 70% of your full benefit if born in 1960 or later.
Does this change affect current retirees?
No, only those born in 1960 or later will be affected by the change in FRA.
Will the FRA increase again in the future?
Possibly. With increasing life expectancy, more adjustments could be proposed to keep Social Security sustainable.