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Beginning in 2026, individuals born in 1960 or later will need to wait until age 67 to receive their full Social Security retirement benefits.
This update represents the latest phase of the Social Security Act amendments introduced in 1983, which gradually increased the retirement age to ensure the long-term sustainability of the system.
According to reports from CBS News, this adjustment will reduce the total lifetime benefits younger generations may receive, as they will have more working years before becoming eligible for full payments.
Who Will Be Affected?
For anyone born in 1960 or after, 67 is now the new Full Retirement Age (FRA). Claiming benefits early—at age 62, for example—can result in a permanent reduction of up to 30% in monthly payments.
This means that a worker planning to retire at 62 in 2026 would receive significantly lower benefits compared to someone who delays until 67.
CBS News highlights that early retirement will now come with a more substantial long-term financial penalty.
The Social Security Administration (SSA) explains that the change is necessary due to longer life expectancies and an aging population, both of which put pressure on the Social Security system.
Why Working Longer Can Pay Off
As reported by Kiplinger, remaining in the workforce beyond age 67 can increase your monthly benefit, since additional years of earnings count toward the final benefit calculation.
Additionally, delaying benefits up to age 70 generally results in the highest possible monthly payout.
The SSA provides online tools and calculators to help workers determine their exact Full Retirement Age and estimate how delayed retirement would influence their benefit amount.
Important Considerations For Workers Born After 1960
Workers affected by the new rules should evaluate:
- Whether they can delay claiming benefits until age 67 or later
- The potential long-term financial loss caused by claiming Social Security early
- Whether they are prepared—professionally and financially—to work additional years
According to SSA estimates, a worker eligible for a $1,000 monthly benefit at full retirement age could see that amount reduced to $700 if benefits are taken at age 62.
As a result, early retirement decisions require careful planning to avoid long-term financial strain.
The shift to a 67 Full Retirement Age starting in 2026 marks a major milestone in Social Security adjustments.
For workers born in 1960 and after, delaying benefits is now more important than ever to maximize monthly payments.
Understanding how these changes affect benefit calculations will help ensure better financial preparation for retirement.