Goodbye To Retirement At 65: Social Security Sets New Retirement Age From 2026

The upcoming changes to the Social Security retirement system aren’t sudden — they’re part of a long-term reform plan first introduced in 1983 to help ensure the financial stability of the program.

This final phase marks the completion of those reforms, designed to reflect longer life expectancies and the changing economic and demographic landscape in the United States.

What’s Changing?

One of the most important updates is the increase in the Full Retirement Age (FRA).

  • Individuals born in 1959 will reach FRA at 66 years and 10 months.
  • Those born in 1960 or later will need to wait until age 67 to receive full Social Security benefits.

This change affects not just when people can retire with full benefits, but also how much they’ll receive depending on when they start claiming.

The Economic Impact

The rise in FRA is a response to longer lifespans. As Americans live longer, they draw from Social Security for more years — putting increasing pressure on the system. Without this adjustment, the program could face serious financial strain, potentially jeopardizing future payments.

If you choose to begin collecting Social Security at age 62 — the earliest possible age — your monthly benefit will be permanently reduced by about 30%. For those born in 1960 or later, that’s a significant cut for starting five years before the new FRA.

When Should You Claim?

There’s no one-size-fits-all answer. The best time to claim benefits depends on your health, financial situation, and life expectancy:

  • If you’re in good health and financially secure, waiting longer to claim may increase your lifetime benefits.
  • If you have a shorter life expectancy or need income sooner, it may make sense to claim earlier, despite the reduced monthly payments.

Plan Ahead

It’s important to stay informed. Regularly check your Social Security statement to monitor your earnings and projected benefits. You can also use tools like the SSA Retirement Estimator to compare how much you’d receive depending on the age you begin claiming.

 

Source: MARCA