The Social Security program has been providing tens of millions of individuals across the country with financial support during the more vulnerable periods of their lives for 90 years now. The program was first introduced close to a century ago with the aim of preventing elder poverty. Today, the program has amassed well over 70 million beneficiaries including retirees, disability individuals, and survivors. The way that the program functions is simple: you make monthly payroll tax contributions while you are working so as to earn work credits, and once you have accumulated a sufficient number of work credits and are of a retiring age, you become eligible for benefits as issued by the Social Security Administration (SSA).
In terms of retiree benefits, Social Security can be claimed as of age 62, however, claiming at this age will result in your benefit being reduced by up to 30%. This is due to the policy of a “full retirement age”. The full retirement age is the age at which the claimant becomes eligible for 100% of their benefit. In 2026, the full retirement age is slated to increase one final time, bringing the retirement age up to 67.
What is the full retirement age?
When the Social Security program was first introduced in 1935, the full retirement age where claimants could receive 100% of their benefit was age 65, regardless of the claimant’s year of birth. Fast forward several decades and we reach the Social Security Amendments of 1983. Financially speaking, the program was not in good health, while life expectancy has also begun to grow. As a result, it was decided that the full retirement age would be increased to bring it up to age 67.
The increase would be gradual, rather than all at once and as such, the full retirement age has since been increasing in two month increments per year. Now, your full retirement age is determined in relation to your year of birth. In 2025, the full retirement age increased to 66 years and ten months for those born in 1959. In the year before that, the full retirement age increased to 66 years and eight months for those born in 1958, and so on.
Since the full retirement age increases in two month increments each year, the full retirement age will finally be increased to age 67 next year. This full retirement age of 67 will apply to anyone born in 1960 and later. This means that someone born in 1960 will reach their full retirement age in 2027. Once the full retirement age officially reaches 67 years of age, it will no longer be increased.
How does retirement age affect your benefits?
Social Security can be claimed from age 62, however, since the full retirement age is currently 66-67, this is considered as an early claim. As a result, your benefit will be reduced by up to 30%, depending on how many months remain between the age at which you claim and your full retirement age. It is also important to note that this reduction is permanent, meaning that your benefits will not be recalculated once you do reach full retirement age.
Conversely, if you delay your claim until you are 70, you will earn delayed retirement credits. For every year that you delay your claim beyond your full retirement age until age 70, you will receive an 8% boost to your benefits. For instance, if someone with a full retirement age of 67 delays their retirement until they are 70, they will receive a 24% boost to their benefits since they had delayed their claim by three years.
In 2025, the maximum retiree benefit issued at full retirement age amounts to $4,018, however, the SSA issues another check that is bigger than this. The absolute maximum benefit amount paid by the SSA currently amounts to $5,108 and it is issued to retirees with delayed retirement credits.