When is Social Security’s retirement age? Age 62, 67, or 70?

When is Social Security’s retirement age?

In 2018, my uncle Tom, who was 62 at the time, thought he made a good decision by claiming Social Security benefits early. His body was exhausted after 40 years of construction work. He didn’t know, and only discovered after reviewing his first year of benefits statements, that claiming his retirement five years earlier than his full age of 67 would permanently cost him 30% of the monthly benefit. This is $650 less per month for his entire life.

What makes 2025-2026 so important for Social Security is that it marks the end of a 42-year transition which fundamentally altered retirement in America. You will reach retirement age at 67 if you were born after 1960. This is not 65 as your parents did, nor 66 as many baby boomers. This change will affect over 70 million workers in the future, affecting their retirement plans, claiming strategies and monthly benefits.

This guide will explain how the Social Security full retirement age change affects you according to your birth year. It will also tell you why Congress made this change, how claiming early or late impacts your benefits, with dollar amounts and how it can make a difference of tens of thousand dollars in lifetime benefits.

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What is the full retirement age and why does it matter?

Full Retirement Age (FRA), also known as the Full Retirement Age, is the age when you are entitled to 100% of your Social Security retirement benefits based on lifetime earnings. This is not the earliest you can claim, which is 62. Nor is it the maximum age at which your benefits are maximized (70). FRA is the standard by which early and late claiming penalties, and bonuses are measured.

The full retirement age used to be 65 until Congress passed legislation in 1983 that gradually raised the age. This was because people were living longer and generally healthier as they aged.

Why is this more important than a simple number? Every month that you claim benefits prior to your FRA will reduce your monthly payment, and each month that you delay your FRA past age 70 will increase your payment. It’s not about minor adjustments, but about monthly benefit differences of 30 percent or more that accumulate over the course of a 20-30-year retirement.

The Social Security Retirement Age Chart Complete by Birth Year

The Social Security Retirement Age Chart Complete by Birth Year

Your FRA is determined by your birth date. The full breakdown is below:

  • Born between 1943 and 1954: FRA is now 66 years old
  • FRA turns 66 in 2 months if you were born in 1955
  • Born 1956: FRA has 66 years, 4 months and 4 days.
  • Born 1957: FRA has 66 years, 6 months and 6 days.
  • Born 1958, FRA is now 66 years 8 months old
  • Born 1959, FRA is now 66 years old and 10 months
  • Born in 1960 or later, FRA is 67.

The full retirement age for individuals born in 1959 is now 66 years, 10 months. Those born in 1960 and later will be 67 at the beginning of 2026. This marks the end of the phased increase that began under the 1983 amendments.

Many people overlook this important detail: the Social Security Administration uses the previous month’s birthday to calculate your benefits and FRA. People born on January 1 also need to refer to the previous calendar year. If you were born in 1960, then your FRA would be 66 years, 10 months, not 67.

Why Congress raised Social Security’s full retirement age

Social Security Amendments of 1983 were not a result of a whim, but rather a response to a real crisis. According to the CDC the average life expectancy in the United States is now over 77 years. When the first Social Security checks were issued in 1940, the average American only lived to 63 years old. The math speaks for itself. A system that was designed for a time when people were not living long enough to receive benefits is now faced with millions of beneficiaries who are collecting benefits for 15+ years.

In the early 1980s, Congress had to make a decision: either raise payroll taxes drastically, reduce benefits significantly, or slowly increase the retirement age. The third option was chosen as it was the least disruptive, and gave workers ample time to adjust their retirement plans.

Demographic shifts such as longer lives expectancies and decreasing birth rates mean that fewer people are contributing to the system in comparison with the increasing number of beneficiaries. The trust fund reserves are expected to be increasingly strained in the coming decade.

Will FRA go beyond 67 years old? According to a Congressional Budget Office proposal, the FRA for workers born in 1964-1981 would be increased by two months each birth year. The full retirement age for workers born after 1981 would be 70. It has not been passed into law but is still being discussed as a possible solution to Social Security’s long-term financing challenges.

The Permanent Impact of Early Claim at Age 62

The Permanent Impact of Early Claim at Age 62

Social Security benefits can be claimed as early as 62 years old, regardless of the FRA. There is a cost. If you were born between 1960 and 2026 you will receive a 30 percent reduction in your monthly payment if you retire at 62. This means that you only get 70 percent of the full amount.

Translate this into real dollars. Claim at 62 and your FRA benefit drops to $1,400 a month. That’s a difference of $600 per month. In 20 years, this is $144,000 in benefits lost. Over 30 years it is $216,000.

The reduction doesn’t happen in a linear fashion, but it compounds the sooner you claim.

  • Claim 36 Months Early: 20% Reduction (80% of FRA Benefit)
  • Claim FRA benefits 48 months in advance: 25% reduction (75% FRA benefit).
  • Claim FRA benefits 60 months earlier (age 62, FRA 67), and receive a 30% reduction (70% FRA benefit).

You can take your benefits before you reach full retirement age. You can collect benefits over a longer time period. Breakeven analysis is dependent on your life expectancy. You might get more lifetime benefits if you apply at 62, but live until 78. Waiting can pay off if you’re able to live until 85 or 90, which is becoming more common.

This is a penalty that’s often overlooked: If you claim early benefits and continue working, you may see your benefits reduced even more if you earn more than the $23,400 yearly earnings limit for 2025. The limit will disappear once you reach FRA but until then, Social Security takes $1 from benefits for every additional $2 earned.

Retiring Social Security past Full Retirement Age Has Many Benefits

Delaying retirement beyond FRA increases benefits permanently through delayed credits. Your monthly benefit will increase each month that you wait to take your benefits. This is until you reach 70. For each month after your birthday, you’ll receive an additional 2/3 of 1 %. This adds up to 8 % for every full year that you wait.

The increase is significant.

  • Delay one year beyond FRA: 8% Increase
  • Delay two years beyond FRA: 16% Increase
  • Increase of 24% if you delay your FRA by 3 years (to 70)

Waiting until 70 will increase your $2,000 FRA benefit to $2,480 a month. This is a $480 boost per month compared to filing at FRA and a $1080 advantage monthly over filing at 62. In 20 years that’s an extra $259,200 than claiming when you were 62. Over 30 years it is $388,800.

Delaying retirement past the age of 70 is not beneficial. At that point, delayed retirement credits cease to accumulate. You’re losing money if you don’t claim by age 70.

2025-2026: Milestone Years for Full Retirement Age Social Security

The FRA increase for those born in 1959 is the penultimate change in age. The final age jump occurs for those born after 1960. These Americans will not be eligible to receive their FRA until the age of 67, so someone born in 1960 would have to wait until January 2027 before they can get their full benefits.

In November 2025, the first individuals born in 1959 will reach their FRA age of 66 and 10 months. November 2026 marks an even greater milestone, as the first individuals born in 1960 will reach FRA 67. This completes the transition which began in 1983.

The younger baby boomers (born between 1955-1964) as well as Generation X (born between 1965-1980) are most affected. Recent research shows that these workers are the least prepared to retire. Gen Xers will face a triple challenge when they retire, including a higher FRA, inadequate retirement savings and an uncertain Social Security solvency.

What are the best strategies for claiming Social Security benefits?

It is not just about maximising dollars that determines the “right” age to claim. The health status of the family, financial needs, benefits for spouses, employment and tax considerations are all factors.

Claim at age 62 if you have serious health problems that suggest a shorter life expectancy. You are in dire need of income and you have no other option. Your spouse is significantly younger than you and will receive survivor benefits based on your records. You hate your job so much that you can afford to receive a reduced benefit.

If you are in good health and your life expectancy is average for your demographic, then claim at FRA. You want to claim benefits, but avoid the penalty for early claims. You are unsure of your longevity and prefer the “middle-ground” approach. You cannot wait until 70, but you don’t have to claim your benefits at 62.

If you are in good health and your family has a history of long life, then you can claim at 70. You can support yourself up to 70 years old with other sources of income. You want your spouse to receive the maximum amount of survivor benefits. If you claim earlier, your earnings would be limited and you plan to continue working. You want to protect yourself from inflation as much as possible, since COLA increases compound your benefits.

Sarah’s parents are a great case study. Her father filed at 62, because he was suffering from heart disease and did not expect to live beyond 75. He was 74 when he died, after collecting benefits for 12 year. Her mother waited to 70 years old because she is healthy and her family lives into their 90s. She has been receiving the maximum benefit at 82 for 12 years, and is likely to continue receiving it for another decade. Both women made the best decision possible for their situation.

Changes in Social Security and Retirement Planning

The retirement age chart can be a useful tool to help you determine when it is best to claim Social Security. But many financial advisors fail in their efforts at highlighting the fact that Social Security wasn’t designed as your sole retirement income.

When FRA was 65, the program replaced approximately 40% of average income before retirement. FRA is now at 67. This means that the replacement rate has dropped. If Congress does not address the issue of solvency, future benefit cuts are possible. The message is clear: supplement Social Security by using personal savings, employer pensions and 401(k), IRAs and other sources of income.

Changes to be considered for 2025-2026

In 2025, the maximum Social Security benefit will be $4,018 a month, supported by an increase of 2.5% in cost-of-living, while the cap on taxable earnings will rise to $176.100. This means that higher earners are going to pay more payroll taxes, up to $10.918.20 compared to just $10.453.20 in 2010.

The wage cap for Social Security Taxes will rise to $184.500 in 2026. This is an increase of $8.400 over $176.100 from 2025.

FAQs about Social Security full retirement age changes

When you reach full retirement age (which is based on your birth date), you receive 100% of the calculated Social Security benefits. Full retirement age for anyone born after 1960 is 67. If you wait until 70 years old to claim your pension, you can earn delayed retirement credits worth 8% each year. This will increase the amount up to 24 %.

In 2025, at full retirement age, the maximum Social Security benefits will be approximately $3,822 a month or $45,864 yearly. This is only possible if you have earned the maximum taxable income for 35 years. Very few people are able to do this. In 2025, the average Social Security benefit will be approximately $1900 per month.

The full retirement age is currently capped at 67 years old for those born in 1960 or after. The Congressional Budget Office has proposed gradually increasing the FRA for those born since 1981. It has not been made law, and new legislation would be required. Such changes would require decades of notice, much like the 1983 amendments.

Your benefits could be temporarily reduced, if you earn more than the annual limit. Social Security will withhold $1 for every $2 you earn above $23,400 in 2025 if your FRA is for the whole year. In the year that you reach FRA, different limits apply. Once you reach FRA you can earn whatever you want without benefit reduction. SSA will recalculate your benefit for the months you were denied.

Your health, your financial needs, the longevity of your family, and any other sources of income will determine whether you should claim at 62 or 67. If your FRA is higher than 67, claiming at 62 will provide you with income sooner. However, it will permanently reduce benefits by 30%. If you wait until 70, your benefits will increase by 24% over FRA. Calculate your benefits using the SSA’s calculators. You may also want to consult a financial adviser for advice specific to your circumstances.

The calculation of spousal benefits is based on the record of the spouse with a higher income at their FRA. This applies regardless of whether either spouse claims. When you claim spouse benefits before your FRA, the benefits are reduced in a similar way to retirement benefits. The maximum spousal benefits is equal to 50% of the FRA amount. It is important to carefully analyze the interactions between your benefit and spousal benefits as well as survivor benefits, especially when FRA increases are involved.

Prepare for your Social Security Claim Decision

Millions of Americans who are approaching retirement will be affected by the 2025-2026 milestone for Social Security’s transition to full retirement age. Understanding these changes is important, whether you are approaching retirement age and want to know when the best time would be to claim, are nearing your FRA date and need to determine your optimal claiming period, or have years before but wish plan strategically.

Take three actions now:

Create a My Social Security Account at ssa.gov. This will allow you to view your earnings history as well as estimated benefits for different claiming age ranges. Verify that your earnings have been recorded correctly. Errors can affect your benefit calculation.

Second, calculate your breakeven age for different claiming scenarios. Online calculators show the difference between claiming early and claiming later. However, none of them can predict your lifespan.

Third, Social Security should be considered as a component, and not the whole plan, of a comprehensive retirement plan. Diversifying retirement income is more important than ever because of the combination of demographic changes, rising FRA and uncertain long-term solvency.

My uncle Tom, who’s story was the opening of this article, wishes that he had understood these implications prior to claiming benefits at 62. He is healthy at 69, and will likely live well into his 80s. A permanent 30% reduction in benefits would cost him more than $150,000 over the course of his lifetime if he waited until 67. He is doing well financially, but would be much better off if he knew how the full retirement age change affected his situation.