The Social Security Administration, is moving forward with changes that will raise the full retirement age (FRA) to 67 starting in 2026, marking a significant shift in how –and when– Americans can access their full retirement benefits.
While this adjustment has been years in the making, its implementation is now close enough to impact retirement planning for millions of workers.
For many years, 65 was seen as the standard retirement age in the U.S. However, legislative changes have gradually pushed the FRA for Social Security benefits higher. Beginning in 2025, individuals born in 1959 will reach FRA at 66 years and 10 months.
For anyone born in 1960 or later, FRA rises to 67. While these adjustments may seem modest, they have real financial consequences. Especially for anyone who was hoping to retire early.
Understanding how the rising FRA impacts your benefits is essential for building a solid retirement plan. The shift began with the 1983 Social Security Amendments, which increased FRA from 65 to 67 in a phased approach, based on birth year. Although you can still claim retirement benefits as early as age 62, doing so comes with a permanent reduction. Those born in 1959 face an estimated 29% cut in monthly benefits if they file early, while the reduction grows to about 30% for those born in 1960 or later.
At the other end of the spectrum, delaying Social Security beyond your FRA can boost your monthly benefit by 8% each year, up to age 70. This delay can lead to payments that are up to 32% higher.
Still, many Americans don’t want – or aren’t able – to keep working into their late 60s or 70s. Physically demanding jobs, caregiving responsibilities, or health issues can make delaying retirement unrealistic. That’s why having a solid financial strategy is more important than ever.
Should you be in the midst of a divorce or contemplating divorce, contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.
themirrorus.com