Social Security’s Retirement Age Is Now 67 for Good - Here’s What Changes

A change that Congress set in motion in 1983 is now essentially finished. Social Security's full retirement age has been creeping upward for four decades, and it completes its final step in November 2026 when the first Americans born in 1960 become the last group for whom the phase-in applies. For anyone born in 1960 or later, the full retirement age is now locked in at 67 under current law.

If this affects your retirement goals, understanding what full retirement age actually means, and what it does not change, is the right place to start.

What full retirement age actually means

Full retirement age is the age at which you receive 100% of the Social Security benefit you have earned. Not more, not less. It is the pivot point for every early-claiming reduction and every delayed-claiming credit in the system.

It does not mean you must claim at that age. You can claim as early as 62 or as late as 70, and the system adjusts your monthly benefit permanently based on when you file relative to your full retirement age.

Think of full retirement age as the neutral point. Claim before it and your benefit shrinks permanently. Claim after it and your benefit grows permanently.

How the shift from 65 to 67 happened

Before the 1983 Social Security Amendments, everyone's full retirement age was 65, the same age it had been since the program launched in 1935.

Congress changed that in 1983, raising the full retirement age to 67 in two-month increments spread across birth years, giving workers decades to adjust their planning rather than imposing the change all at once.

The phase-in moved slowly. It paused at 66 for workers born between 1943 and 1954. Then it resumed, adding two months per birth year from 1955 through 1960.

The 1959 cohort, the last group under the old schedule, has a full retirement age of 66 years and 10 months, just two months short of 67. For everyone born in 1960 or later, the full retirement age is a flat 67 with no further phase-in.

One technical note: the Social Security Administration treats anyone born on January 1 as if they were born in the previous year. So someone born January 1, 1960 falls under the 1959 rules and reaches full retirement age at 66 and 10 months, not 67.

What changes at 67 for people born in 1960 or later

The shift from 66 to 67 as the full retirement age has three concrete effects on how benefits are calculated.

Claiming at 62 now means a 30% permanent reduction. For anyone with a full retirement age of 67, claiming at 62, the earliest possible age, permanently reduces monthly benefits by approximately 30%. If your full benefit would be $2,000 per month at 67, claiming at 62 drops that to about $1,400 for the rest of your life.

Waiting past 67 earns delayed retirement credits of about 8% per year. Every year you delay claiming past your full retirement age, your benefit increases by approximately 8%, up through age 70. Waiting until 70 produces roughly 124% of your full retirement age benefit. On a $2,000 full benefit, that is about $2,480 per month.

The earnings test disappears once you reach full retirement age. If you claim Social Security before your full retirement age and continue working, the SSA temporarily withholds part of your benefit if your earnings exceed a set threshold. In 2026, that threshold is $24,480 per year for workers under full retirement age. Once you hit full retirement age, the earnings test goes away entirely, and you can earn any amount without affecting your benefit.

What does not change

Two things that sometimes get tangled up with this shift are worth separating out clearly.

Medicare eligibility stays at 65. Full retirement age and Medicare eligibility are completely separate. The fact that Social Security's full retirement age is now 67 does not move Medicare to 67. You can still sign up for Medicare at 65 regardless of when you plan to claim Social Security.

Your claiming window does not change. You can still claim Social Security anywhere from 62 to 70. Full retirement age is the point where benefits are neither reduced nor enhanced. It is a pivot, not a boundary.

Proposals to raise the age further exist but are not law

The completion of this shift has renewed a longstanding debate. Some policy analysts and lawmakers have proposed raising the full retirement age further, to 68 or 69, as a way to address Social Security's projected funding shortfall. The trust fund is projected to face a benefit shortfall in the early 2030s without Congressional action.

Those proposals are separate conversations. Under current law, the full retirement age is 67 for everyone born in 1960 or later, and no further increase is legislated. If you see reports of a higher retirement age, they reflect proposals, not enacted law.

Bottom line

For anyone born in 1960 or later, the full retirement age for Social Security is 67. Claiming at 62 can reduce your monthly benefit by about 30%, while waiting until 70 can increase it to about 124% of your full benefit. Once you reach full retirement age, the earnings test goes away, while Medicare eligibility remains at age 65.

Still, there is no single best age to claim Social Security. Your health, income, work plans, and spouse's financial needs can all affect your decision. The SSA's Retirement Estimator can help you compare your options, since benefits for seniors can vary widely based on earnings history and when they choose to claim.

You May Also Like

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

By FinanceBuzz Editors

10 Smart Money Moves to Retire Stress Free

By FinanceBuzz Editors

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

By FinanceBuzz Editors

7 Brilliant Ways to Build Wealth After 40

By FinanceBuzz Editors

5 Ways Seniors Are Throwing Away Money

By FinanceBuzz Editors

Best High-Yield Savings Accounts of October 2026, Compared

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms