Decades of Social Security Rules Will Raise Full Retirement Age

WASHINGTON — Are you considering retiring next year? It might be a good idea to reassess your plan regarding your retirement age.

Starting in 2026, long-standing regulations will raise the age at which retirees can claim full benefits. The full retirement age (FRA) is the point at which individuals can begin receiving their complete retirement benefits from the Social Security Administration.

Your FRA is determined by your birth year, but the amount you receive monthly is based on your work history and earnings. While you can retire before reaching your FRA, opting to retire as early as age 62—the minimum age—means you could face a reduction of up to 30% in your benefits.

Next year, for those born after 1960, the Social Security FRA will increase to 67. This adjustment is part of the final phase of changes stemming from the Congressional Amendments of 1983 aimed at sustaining program financing.

The FRA has been gradually increasing, with a two-month rise each year starting in 2021, and the current age for those born in 1959 is 66 years and 10 months. People born after 1960 might find themselves waiting until 2027 to access their full Social Security benefits.

Under current laws, retirees who choose to delay claiming benefits until they reach 70 years of age will receive enhanced benefits from the Social Security Administration.

Currently, almost 75 million individuals receive some form of Social Security benefits, which includes retirees, individuals with disabilities, and children, according to latest statistics.

How Do I Know My Full Retirement Age?

If you’re uncertain about your FRA, the Social Security website features a calculator that can provide this information based on your birth date.

Social Security 2026 Budget Adjustment

Beginning in January, millions of Social Security recipients will experience a 2.8% cost-of-living adjustment (COLA) in their monthly payments.

Officials state that the 2026 COLA translates to an average increase of about $56 each month for retirees.

Recent Increases in Social Security

Recipients will enjoy a 2.5% increase in benefits in 2025, following a 3.2% rise in 2024 due to significant economic factors, and an 8.7% spike in 2023 attributed to the highest inflation rate in four decades.

Over the last 20 years, the average COLA has been around 2.6%, while it jumps to about 3.1% over the past decade, according to the Social Security Administration.