Social Security full retirement age 2026: Deciding when to claim Social Security is one of the biggest financial choices many people make as they approach retirement. While you’re allowed to start collecting benefits as early as age 62, doing so comes at a cost, your monthly payments are permanently reduced, as per a report.

Why claiming Social Security at 62 can permanently reduce your benefits

That’s why many people choose to wait until full retirement age, or FRA. At that point, you can claim your Social Security benefits without any reduction. But an important change to FRA takes effect in 2026, and it could influence when you decide to sign up.

In the past, full retirement age was 65, matching the age when most people qualify for Medicare. To help shore up Social Security’s finances, lawmakers later raised FRA, gradually shifting it from 66 to 67 depending on birth year, as per a 24/7 Wall St report.

How Social Security’s full retirement age is changing in 2026

People born in 1959, who turn 66 this year, have a full retirement age of 66 and 10 months. But for anyone turning 66 in 2026, those born in 1960 or later, full retirement age is 67.

Also read: AMZN stock today: Why Amazon shares jumps after AWS expands self-driving vehicle deal

What full retirement age means for Social Security benefits

That difference matters. Claiming Social Security even one month before reaching FRA results in permanently reduced benefits, something many retirees can’t easily afford.

Why Social Security income matters more for retirees with limited savings

Many Americans head into retirement with limited savings. According to the Federal Reserve, the median retirement savings for adults ages 65 to 74 was $200,000 as of 2022. While that number may have risen since then, it still shows that a large number of seniors don’t have substantial savings to fall back on.

For those retirees, Social Security often plays a central role in covering everyday expenses. Taking a reduced benefit by claiming too early can have long-term consequences.

For now, age 67 is the point at which people born in 1960 or later can collect Social Security without a reduction, as per the 24/7 Wall St report. But that may not be permanent.

Also read: XRP price today surges past $2 in crypto rally but why a looming Death Cross could change everything

Could Social Security’s full retirement age increase again

Social Security is facing a major funding shortfall, and without action from lawmakers, broad benefit cuts could occur. One idea that has been discussed is raising full retirement age again, possibly to 68 or 69, for workers born after a certain date.

If such a change were made, it would likely be phased in gradually, with FRA increasing by a few months at a time and applying mainly to younger workers rather than those close to retirement.

What to know about delaying Social Security benefits past full retirement age

If you’re nearing retirement, knowing your full retirement age is especially important, and waiting until at least that point can help you avoid reduced benefits if Social Security will be your main source of income.

It’s also worth remembering that delaying Social Security past full retirement age increases your monthly benefit by 8% for each year you wait, up until age 70, as per the 24/7 Wall St report. After that, there’s no added benefit to delaying.

FAQs

What is full retirement age?
FRA is the age at which you can claim Social Security benefits without a reduction.

Can I claim Social Security before FRA?
Yes, benefits can be claimed as early as age 62, but payments are permanently reduced.