Retirement Social Security

You Have Less Than 12 Weeks To Prepare for This Permanent Social Security Change

Your Social Security filing strategy could shift as a result of this update.

By Maurie Backman , Edited by Laura Hohenstein

Updated Oct. 16, 2026

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There are many retirees today who are living on just Social Security. And for people in that situation, claiming benefits at the right time is crucial.

The filing age you choose has a direct impact on your Social Security benefits. But a key rule is changing in less than 12 weeks. And if you haven't claimed benefits yet but are thinking of doing so in 2027, it's important to know what you're dealing with.

Here's the major Social Security change that's coming up and how knowing what it entails could help you avoid making a huge mistake.

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How Social Security determines your monthly benefits in retirement

Your monthly Social Security benefit in retirement hinges on two things. The first is your wage history. Social Security takes your 35 highest-paid years of income into account when calculating your monthly benefits. In that formula, earlier wages are adjusted to account for inflation.

The other factor is your filing age. If you wait until full retirement age (FRA) to sign up for Social Security, you'll get your precise monthly benefit based on your earnings history. But if you file ahead of FRA, your benefit gets reduced. On the flipside, delaying your claim past FRA could lead to larger monthly benefits each month throughout retirement.

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Social Security's full retirement age is changing

Social Security's FRA has long been either 66 or 66 and a certain number of months, depending on year of birth. But beginning in 2027, FRA will be 67 for anyone born on Jan. 2, 1960 or later.

If you're thinking about claiming Social Security in 2027 and aren't yet 67, you could end up slashing your benefits on a permanent basis. And that could hurt you financially throughout retirement.

Why filing at the right time is crucial

The consequences of claiming Social Security early can be significant. For each year you file for benefits ahead of FRA, your monthly checks are reduced by 6.7%, up to the first three years you file early. Beyond that, you lose 5% per year. This means that filing for Social Security at the earliest possible age of 62 results in a 30% reduction in benefits compared to waiting until 67.

On the other hand, your benefits grow 8% for each year you delay your Social Security claim past FRA. That incentive runs out at 70, but you could boost your monthly checks by 24% if you wait until that point.

So let's say your FRA benefit is $2,000. Filing for Social Security one year early cuts that check by about $133 per month, leaving you with $1,867 instead. If you file five years early at 62, your benefit gets reduced to $1,400.

But if you delay your claim all the way until age 70, your monthly Social Security check will be $2,480. Even if that's not doable, delaying your Social Security claim a single year could lead to a check worth $2,160 each month instead of $2,000, which could make a difference in your day-to-day finances.

Also note that in this situation, the gap between filing for Social Security at age 62 versus age 70 is more than $1,000 per month. So clearly, this is a huge financial decision you need to consider carefully.

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Your exact birthday matters when it comes to claiming benefits

You'll generally hear that Social Security's FRA is 67 for anyone born in 1960 or later. That's largely true, but there's an exception for people born on January 1, 1960.

People in that situation are treated by Social Security as if they were born in the previous month. That means their FRA is 66 and 10 months, which is FRA for people born in 1959. Always verify your exact FRA before claiming Social Security so you don't make a mistake.

Bottom line

If you're nearing retirement without much savings, your Social Security benefits may become your primary or even only source of income. So it's important to do what you can to eliminate some stress living on Social Security. And a big part of that boils down to claiming benefits at the right time.

While you may end up having to file for Social Security ahead of FRA due to losing a job or being physically unable to work, claiming benefits early clearly has big financial consequences. Waiting for FRA or delaying your claim could put a lot more money in your pocket if sitting tight until that point is doable.

Before you make your decision, create a my Social Security account and get an estimate of your retirement benefit. You can do this by accessing your most recent earnings statement.

Your estimate should also show you what benefit reduction or increase you may be looking at, depending on your filing age. That should help you make a more informed decision.

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