When the Social Security program was first introduced close to a century ago, the retirement age at which a beneficiary became eligible for 100% of their benefits was 65. Skipping forward a couple of years, the Social Security program was amended with the aim of better maintaining its longevity and financial stability. As such, including amongst the 1983 Amendments to the Social Security program was the decision to gradually increase the age which a beneficiary becomes eligible for 100% of their benefits.
As per the amendments, it was stipulated that the full retirement age would be increased to age 67, however, this would be done gradually over the course of several years. Since then, the full retirement be has been gradually increasing in two month increments each year. In 2026, the full retirement age will finally be increased for one final time bringing the retirement age up to 67 years of age. Following this, the full retirement age cannot increase further without approval from Congress.
As such, when it comes to claiming retiree benefits from the Social Security Administration (SSA), the age at which you claim plays a much bigger role in the benefit calculation than one would assume. Here is what you need to know.
Full retirement age
The earliest age at which Social Security benefits can be claimed is age 62, however, it is important to note that this is considered as claiming early. This is because of the policy of the full retirement age which has been gradually increasing in two month increments each year since the 1983 amendments to the program.
For individuals born between 1943 and 1954, the full retirement is a 66 years of age. Going forward from there, the full retirement age increases by two months for someone born in 1955, then it increases by four months for someone born in 1956, and so on. In 2025, the full retirement age increased to 66 years and ten months for those born in 1959.
Next year in 2026, the full retirement age will face one final increase as per the amendments of 1983. The full retirement age in 2026 will finally increase to 67 years of age for those born in 1960 and later. Going forward from this point, the full retirement age will remain at 67 years for those born in 1960 and later.
A major trust fund used to pay out benefits is projected to reach a shortfall as soon as 2033. As such, speculation has been circulating regarding whether or not the full retirement age will be increased further as means of preventing this shortfall. This is just one of several proposed solutions and no official channel has shared any information regarding it and as such, it may not come to pass.
How does retirement age impact benefit totals?
While Social Security can be claimed from age 62, this is considered as claiming early since the full retirement age is currently 66-67. If you claim benefits early, you will be locked into a reduced benefit of up to 30%. The exact percentage by which your benefits will be reduced is determined in relation to the number of months that remain between your current age and your full retirement age.
For instance, if someone born between 1943 and 1954 claims benefits at age 62, there are 48 months between their current age and their full retirement age (66). This means that their benefit will be reduced by 25%, as per the SSA.
If someone who is born in 1960 claims benefits at age 62, there are 60 months between their current age and their full retirement age (67), and as a result, 30% of their benefit will be reduced.
Alternatively, if you delay your claim beyond your full retirement age, you will receive an additional 8% increase to your benefit for every year that you delay claiming until you are 70.
Understanding how the Social Security program works can make the world of difference to the final amount that will be reflected in your benefit check. Claiming too early can result in a reduced benefit, however, this may work out to be more worthwhile for some due to factors such as life expectancy and health.