If you were planning to retire at 65 and collect full Social Security benefits, it’s time to rethink your strategy. Starting in 2026, the government is officially raising the full retirement age to 67, marking a historic shift that will impact millions of future retirees across the country.
This isn’t a surprise decision, but it is the final chapter of a law set in motion decades ago. Now, anyone born in 1960 or later will have to wait until age 67 to claim full Social Security retirement benefits. While many Americans still assume 65 is the “normal” retirement age, that number is officially outdated—and if you retire earlier, you’ll face a permanent reduction in your monthly check.
What Exactly Is Changing in 2026?
Starting January 1, 2026, the full retirement age (FRA) for Social Security will increase to 67 years old for anyone born in 1960 or later. This is the final scheduled step in a law passed back in 1983, which began gradually raising the FRA from 65.
Here’s how it breaks down:
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Born in 1959: You qualify for full benefits at 66 years and 10 months.
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Born in 1960 or after: You won’t reach full benefits until 67.
This change doesn’t stop you from claiming benefits as early as 62, but you’ll see up to a 30% permanent reduction in your monthly payout if you do.
Why Is Social Security Raising the Retirement Age?
The short answer? People are living longer, and the system is running out of money.
When Social Security was first created in the 1930s, the average retiree lived about 13 years past retirement. Today, the average is closer to 20 years. That’s great for longevity—but it puts a massive strain on a system designed for shorter retirements.
By slowly raising the FRA, the government hopes to stretch Social Security’s lifespan and reduce the need for drastic cuts. Without further action, the Social Security Trust Fund is projected to run short by the mid-2030s, triggering across-the-board benefit reductions of about 20% unless Congress intervenes.
What Happens If You Retire Early?
If you still plan to stop working at 62, be prepared to take a hit. Early retirees born in 1960 or later will see their monthly checks reduced by about 30% compared to what they’d receive at full retirement age.
On the other hand, delaying your benefits past 67 can boost your payout. For every year you wait (up to age 70), your monthly benefit grows by about 8%, which could mean 24% more per month if you wait until 70.
Who Will Feel This the Most?
This change affects:
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Anyone born in 1960 or later
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Workers planning to retire at 62–65
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Blue-collar and physically demanding professions, where staying on the job until 67 may not be practical
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Lower-income seniors who rely more heavily on Social Security
The impact is especially tough for those without pensions or significant savings. If your plan was to retire at 65 and receive full benefits, you’ll now have to adjust expectations or supplement your income.
Should You Change Your Retirement Plan?
If you’re under 65 today, absolutely. Here are some steps to consider:
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Review your Social Security statement to see how your estimated benefits change by retirement age.
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Maximize retirement savings in 401(k)s or IRAs to bridge the gap if retiring early.
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Plan for health insurance between retirement and Medicare eligibility, which still begins at 65.
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Work part-time if you want to ease into retirement but wait to collect your full benefits.
This retirement age change is now locked in—and there are already proposals in Congress to raise the FRA again, possibly to 68 or 69, within the next decade. That’s why younger generations should prepare for an even later retirement window.
