Social Security : The days of retiring at 65 are fading fast. Starting in 2026, the Social Security Administration (SSA) will officially set the full retirement age (FRA) at 67 for Americans born in 1960 or later. This change, the final step of a reform started in 1983, means workers will need to wait longer to claim their full Social Security benefits. While this shift aims to keep the program financially stable, it’s sparking debates about fairness, health, and the realities of working longer. Here’s what you need to know about this new retirement age and what it means for you.
Why the Change Happened
Back in 1935, when President Franklin D. Roosevelt signed the Social Security Act, 65 was set as the retirement age because most people didn’t live much longer—average life expectancy was just 61. Fast forward to 1983, the system was in trouble. The U.S. had faced back-to-back recessions, and Social Security was paying out more than it was taking in. To fix this, Congress passed reforms, signed by President Ronald Reagan, to gradually raise the FRA. By 2026, those born in 1959 will be the first group to face an FRA of exactly 67. Today, with life expectancy around 79, the SSA says this change helps balance the books as fewer workers support more retirees.
What Does Full Retirement Age Mean?
The FRA is the age when you can claim your full Social Security benefits without any reduction. If you retire earlier, say at 62, your monthly payments get cut—permanently. For example, if your full benefit at 67 would be $1,800 a month, retiring at 62 drops it to about $1,260, a 30% reduction. Wait until 70, and you could get around $2,323, a 24% boost. The table below shows how your age affects your benefits, based on a $1,800 monthly benefit at FRA:
| Age | Monthly Benefit | Percentage of Full Benefit |
|---|---|---|
| 62 | $1,260 | 70% |
| 65 | $1,560 | 87% |
| 67 | $1,800 | 100% |
| 70 | $2,323 | 124% |
This means planning when to retire is a big decision. Claim early, and you’ll get less for life. Wait longer, and you’ll get more—but you’ll need to keep working or have other income.
The Upsides and Downsides
For some, working until 67 or even 70 isn’t a big deal. Many Americans enjoy their jobs or need the income. Delaying retirement can also mean bigger checks from Social Security, which is a plus for those who can stay in the workforce. But not everyone has that option. Health issues, physically demanding jobs, or layoffs can make working past 65 tough. Critics argue the higher FRA hits low- and moderate-income workers hardest, as they’re more likely to rely on Social Security and less likely to have savings to bridge the gap.
What’s Next for Social Security?
The SSA’s trust fund is projected to run dry by 2034, which could mean benefit cuts if nothing changes. Some lawmakers, like those in the Republican Study Committee, have floated raising the FRA to 69, starting with those turning 62 in 2026. This idea, tied to far-right plans like Project 2025, is unpopular, with many Americans worried about losing thousands in benefits yearly. Others suggest no further cuts are coming, but with political debates heating up, nothing’s certain. President Trump’s team has sent mixed signals, leaving retirees wondering what’s next.
How to Plan for 2026
With the FRA hitting 67, planning is key. If you’re nearing retirement, think about your health, job, and savings. Can you work longer for a bigger benefit, or do you need to claim early despite the cut? Financial advisors suggest saving more in 401(k)s or IRAs to cover gaps. Talking to the SSA or a planner can help you pick the best time to claim benefits. One thing’s clear: retiring at 65 is no longer the standard, and Americans will need to adjust to this new reality. Stay informed, as future reforms could shake things up again.