Around seventy million Americans receive benefit checks from the Social Security Administration (SSA) each month. These seventy million Americans comprise of a variety of individuals such as survivors, retirees, and disabled individuals, and according to twenty or so years worth of surveys from Gallup, between 80 and 90 percent of beneficiaries are reliant to some extent on these benefits to cover their living expenses.
In the case of retirees, Social Security can be claimed starting from age 62, however, this is not the “full retirement age” as per the SSA guidelines. As such, if you claim prior to reaching your full retirement age, your benefits will face a small decrease each month until you reach your full retirement age. Starting in 2026, the full retirement age for everyone born in 1960 and later will be 67 years of age.
Here is what you need to know.
Social Security full retirement age
Over the past 42 years, the full retirement age at which a beneficiary would be able to claim their full benefits has been gradually increasing as a result of the 1983 Social Security Amendments. As of 2026, however, the full retirement age for those born in 1960 and later will officially be set at age 67, thereby marking an end to this transitional period. Additionally, the full retirement age for those born in 1959 has been increased to 66 years and 10 months.
According to the SSA website, the 193 Amendment regarding the gradual increase of the full retirement age reads as follows:
“Raises the age of eligibility for unreduced retirement benefits in two stages to 67 by the year 2027. Workers born in 1938 will be the first group affected by the gradual increase. Benefits will still be available at age 62, but with greater reduction.”
The decision to raise the full retirement age came about as a result of a general increase in life expectancy. Longer life spans would put a great deal of strain on the Social Security trust fund if the previous retirement ages were kept in place. Once the full retirement age of 67 comes into effect next year, the full retirement age will cease to increase for the foreseeable future — unless a new amendment similar to the 1983 amendment is introduced.
When is the best age to start claiming?
As mentioned above, claiming Social Security benefits too early will result in a monthly reduction to your benefit amounts even though you are allowed to begin claiming from 62. Conversely, if you wait until age 70 which is beyond the full retirement age, you will qualify for “delayed retirement credits” and as a result, your benefit amounts will be increased.
For instance, if someone who is born in 1960 opts to claim benefits at age 62 — using a monthly benefit of $1,000 as a base — their monthly retirement benefit will be reduced by 30% leaving them with only $700 as there will be a period of 60 months between the age of 62 and their full retirement age of 67.
Even though delaying claiming your benefits until age 70 so as to earn the most as a beneficiary is the ideal scenario, it may not be feasible for everyone. Planning out your retirement is an important undertaking and the life situation for one individual will not be the same as the next person. As such, for some, claiming at the full retirement age, or even earlier may be more beneficial.
The SSA also advises beneficiaries or potential beneficiaries who are reviewing all of their options to note that “if you decide to delay your benefits until after age 65, you should still apply for Medicare benefits within 3 months of your 65th birthday. If you wait longer, your Medicare medical insurance (Part B) and prescription drug coverage (Part D) may cost you more money.”