After decades of hikes, the government confirms the “final” retirement age change is happening in 2026 — what happens next

For more than four decades, Americans have watched the full retirement age rise under a schedule set back in 1983. In 2026, the final step of that schedule takes effect. The full retirement age reaches its permanent level of 67, applying to everyone born in 1960 or later.

For millions of Americans, the change means they will have to wait longer to claim full Social Security benefits. For example, those born in 1960 will turn 66 in 2026 but won’t reach their full retirement age of 67 until 2027. This affects retirement plans, savings strategies, and how retirees budget their benefits.

Social Security Full Retirement Age Update for 2026

Today, workers can claim their benefits as early as age 62. However, doing so reduces monthly payments permanently by roughly 30% less than waiting until the Full Retirement Age (FRA). Since 2021, the full retirement age has been increasing by two months each year. For instance, people born in 1959 now face an FRA of 66 and 10 months.

Since the FRA will rise to 67 next year, retirees born in 1960 will be turning 66 but they will have to wait for another year. That means, they will claim their retirement benefits at FRA in 2027.

Why the Age Has Been Rising Since the 1980s

The rise of the full retirement age is part of major reforms that lawmakers passed in 1983 to boost the solvency of the Social Security fund. The increases were deliberately slow and predictable across many years.

People born between 1943 and 1954 faced an FRA of 66. After that, every new birth year faced a slightly later FRA. The table below summarizes the FRA for people born between 1943 and 1960 or later:

Social Security Full Retirement Age (FRA) by Birth Year

Beginning in 2026, the FRA will fully transition from the age 66 era to the age 67, and that will be the last change in FRA.

What This Means for Baby Boomers and Gen X

The youngest baby boomers born between 1960 and 1964 and much of Generation X born between 1965 and 1980 will be the most directly impacted. Although the change in FRA was expected, these groups will face some significant consequences.

“Raising the retirement age is an effective cut in lifetime benefits for younger baby boomers, members of Gen X and all the generations after,” said Max Richtman of the National Committee to Preserve Social Security and Medicare.

Although the change means that most will have an additional year to work and save more, the rise in FRA will not necessarily enable them to save more. “Having time to plan, however, does not mean they have been able to put aside more for retirement, considering the stagnation of real wages and the rising cost of college tuition, home prices, and other key living expense,” Richtman adds.

Despite the rise in FRA, data shows that most Americans retire earlier than planned. According to research from the Transamerica Center, the median retirement age is 62, and this is attributed to job loss and health issues among retirees. This explains why 44% of Americans say that they expect to claim Social Security before reaching their FRA.

How Your Social Security Benefits Change in 2026

The change in FRA in 2026 will bring the following additional changes:

• The maximum Social Security benefit at FRA will increase from $4,018 to $4,152.
• Early filers born in 1960 or later will face the steepest benefit cut if they claim at 62. According to Nexstar, a $1,000 benefit could reduce to $700 if one claimed at 62.

Conclusion

For the first time in decades, no more changes in FRA are expected after it is set at 67 next year unless lawmakers decide otherwise. This stability could help future retirees plan better about their income strategies and retirement.