Just like how everything else in this world is changing, so is Social Security. In order to prolong Social Security’s funds, officials are deciding to slowly raise the Full Retirement Age (FRA). The FRA is the age where you are eligible to collect your full Social Security benefit.
What “Full Retirement Age” Really Means
Social Security beneficiaries can start collecting benefits from the age of 62, however your benefits will be permanently reduced.
The FRA for collecting Social Security benefits has gradually increased to 67. This is aimed at sustaining the program for future benefits. People are now living longer as compared to many years ago. The increase in FRA has been happening gradually over the years.
What’s Changing in 2026
So, what exactly is changing? Well, if you were born in 1959, your FRA is 66 years and 10 months. However, those born in 1960, your FRA is 67.
This implies that it will take a bit longer for someone turning 66 in 2026 to achieve full retirement age. If you want to retire early, it might not seem like much, but it might significantly affect your benefits.
How It Affects Your Social Security Check
Taking benefits before you reach your FRA permanently reduces your monthly payment. Here’s what that looks like:
- If you retire and start collecting benefits at age 62, your benefits may be cut by approximately 30%.
- Claiming at 65 means a reduction of roughly 13%.
- If you wait until age, this will ensure that you get the maximum out of your benefits.
Your early-retirement reduction will thus be somewhat larger if you were born in 1960 or later than if you were born a few years earlier.
How to Protect Your Full Benefit
You can’t change your birth year, but you can make smart choices to protect what you’ve earned.
- Be mindful about your FRA. Log onto your Social Security online account and go through benefits. Make use of the retirement calculator tool that is available.
- Where possible, try and wait until FRA or even until age 70 to claim benefits. this will ensure you receive your full benefit amount.
- Social Security uses your 35 highest-earning years to calculate your benefit. Missing years mean zeros that pull your average down.
- Make sure to check that your income history to ensure that everything correct.
- Plan ahead and take into consideration your personal living situation. Factor in your health and finances. If your health is good, consider waiting a few years before retiring.
Why the Change Matters
It can be noted that the Social Security program is under pressure. Data suggests that the programs Trust funds will be depleted by 2034 if no changes are made. More people are retiring, and people are living longer, this is putting a strain on the system.
Raising the FRA to 67 contributes to the program’s longevity, but it also implies that future retirees will need to make more cautious plans to ensure they have sufficient income in their later years.
The Bottom Line
For all those born in 1960 or later, the new FRA is 67. Beneficiaries are urged to keep themselves updated regarding these changes so that they are able to make more informed decisions to secure their financial future. Be sure to consult with a financial advisor should you require any assistance making financial decisions.
Even though claiming early might sound like the best solution, it could potentially mean reduced benefits for life. Where possible, wait until FRA or even age 70 to ensure you get the maximum out of your benefits. Be sure to follow the Social Security Administration (SSA) official website for verified updates and information.