Social Security benefits are paid to around 72 million Americans each month, around 79% of which are retirement benefits as per the Social Security Administration (SSA)’s monthly statistical snapshot for June. This insurance program has been paying monthly benefits to retirees, as well as survivors and disabled individuals for close to a century now. In the case of retirees, however, there are some stipulations in place regarding the age at which a senior begins claiming their benefits.
Social Security benefits can be claimed from age 62, however, the program has a Full Retirement Age in place as well. The implementation of the Full Retirement Age came about during the Social Security amendments of 1983 which had been signed into law by President at the time, Ronald Reagan. This amendment stipulated that the age at which a beneficiary could claim their full benefits would gradually increase so as to account for longer life expectancy.
In 2026, the Full Retirement Age will reach 67 years of age and at this point, it will no longer be increased — barring any intervention from lawmakers. Here is what you need to know.
Social Security Full Retirement Age final increase
Prior to the 1983 amendments, the Full Retirement Age was 65. According to the amendment, the Full Retirement Age would be increased in increments of two months each year until it reach 67 and these increases had officially begun in 1991. This means that in 1991, for individuals turning 65 that year, the Full Retirement Age was 65 years and two months. Following this in 1992, the Full Retirement Age increased to 65 years and four months, and so on.
These incremental increases were to continue on until the Full Retirement Age reaches 67 years of age — the Full Retirement Age increased to 66 years and 10 months for 2025. As a result, the Full Retirement Age will finally reach 67 years of age in 2026 and with this final increase, the Full Retirement Age will remain at 67 for those born in 1960 and later.
As such, claiming benefits prior to reaching your Full Retirement Age will result in a deduction to your monthly benefits of up to 30%. Claiming at your Full Retirement Age will allow you to claim 100% of the benefits eligible to you. Additionally, holding off on claiming beyond your Full Retirement Age until you are 70 years of age will allow you to qualify for increased benefit amounts. By claiming late, a beneficiary aged 70 could be eligible to receive around 124% of their benefit.
The Social Security program has been facing financial strain for some time now, however, and as a result of this, potential solutions are currently being debated by lawmakers. Amongst these potential solutions, increasing the Full Retirement Age further has been proposed.
Social Security Trust Fund projected shortfall
According to the latest annual report from the Social Security Board of Trustees, the Old Age and Survivor Insurance (OASI) trust fund will be exhausted by 2033 if Congress does not intervene soon. The OASI trust fund is used to pay out benefits to retirees and survivors, however, if the trust fund is depleted as per the trustees’ estimates, the remaining revenue would only be able to cover 77% of scheduled benefits going forward from 2033. This would spell major trouble for many since for around 40% of retirees, the monthly Social Security check exists as a significant source of income without which they may not be able to cover their living expenses.
In the hopes of preventing this, further increasing the Full Retirement Age, potentially to age 69 has been proposed. This additional increase would be implemented gradually over a period of approximately eight years, beginning in 2026 and ending in 2033. If the Social Security program is amended once again to increase the Full Retirement Age to 69, the cohort of millions of workers presently aged between 30 and 55 will bear the biggest impact from this change.