The full retirement age for Social Security reaches 67 in 2026 for those born in 1960 or later, completing a gradual increase that began in 1983. This means people born in 1960 who turn 65 this year will need to wait until age 67 — in 2027 — to claim their full Social Security benefits without reduction.
Workers can still claim Social Security benefits as early as age 62, but doing so results in a permanent reduction of up to 30 percent in monthly payments compared to waiting until full retirement age, according to the Social Security Administration. Those who delay claiming past their full retirement age earn delayed retirement credits, increasing their benefit by 8 percent per year up to age 70.
The current full retirement age of 67 represents the final stage of a major overhaul enacted in 1983. In April of that year, President Ronald Reagan signed the Social Security Amendments of 1983, a bipartisan set of sweeping changes designed to shore up the program’s finances. The amendment gradually increased the full retirement age from 65 to 67 over a 33-year period, according to the Bipartisan Policy Center. Workers born between 1938 and 1959 experienced the transition in two-month increments, with the age rising progressively for each birth cohort.
For those born in 1960 and later, the increase has now fully phased in. The Social Security Administration notes that this represents the completion of a scheduled legislative change with no further automatic increases built into current law. Individuals born in 1960 or later will have a full retirement age of 67, a threshold that remains in place unless Congress passes new legislation to modify it.
The shift affects millions of baby boomers and younger workers making retirement decisions. Those considering early claiming at 62 face a significant tradeoff: receiving a smaller monthly check immediately versus waiting to receive a larger benefit later. Financial advisors often point to a break-even age in the upper 70s to early 80s, meaning those who live longer generally accumulate more lifetime benefits by waiting until full retirement age or beyond.
Sources
- Social Security Administration — official guidance on full retirement age for those born in 1960 or later, benefit reduction for early claiming
- Bipartisan Policy Center — history of the 1983 amendment increasing full retirement age from 65 to 67 over 33 years
- AARP — timeline of the 1983 Social Security Amendments signed by President Reagan
- Fidelity — information on benefit reduction percentages for claiming at 62 versus full retirement age
