The age at which Americans can fully retire is about to change, and it could have a big impact on your future plans. Starting in 2026, the full retirement age (FRA) for Social Security benefits will increase to 67 years old. This change is significant because it’s the first time in 90 years that the age will rise.
If you’re planning to rely on Social Security for your retirement income, you’ll need to understand how this change will affect you, especially since new data shows the program might run out of money by 2034.
The History of Social Security and Its Changes
When Social Security was first introduced by President Franklin D. Roosevelt in 1935, it was designed to help older Americans avoid poverty in retirement.
The original law set the retirement age at 65, as the average life expectancy at the time was just 61 years. Back then, there were fewer retirees, and people didn’t live as long, so the system was sustainable.
However, times have changed. By the 1980s, many Americans were living longer, and the number of retirees had increased. After back-to-back recessions, the Social Security system was facing financial trouble. In response, Congress passed reforms that gradually raised the full retirement age, which has now reached 67 for those born in 1960 or later. This gradual increase started in the early 1990s and will be fully implemented by 2026.
What Happens if You Retire Early or Later?
While the full retirement age has risen, Americans can still choose when to begin receiving their Social Security benefits. The age at which you start can have a big impact on how much you receive each month.
- Retiring at 62: You can start receiving Social Security benefits at 62, but your monthly payment will be permanently reduced. For example, if your full retirement benefit is $1,800, starting at 62 would mean you only get 70% of that amount, or $1,260.
- Retiring at 65: If you wait until 65, you’ll receive about 87% of the full amount, or around $1,560 per month.
- Retiring at 67: If you wait until your full retirement age of 67, you will receive the full benefit of $1,800 per month.
- Retiring at 70: If you delay retirement until 70, your monthly benefit will increase to $2,323, which is about 124% of the original amount. However, after 70, the benefits do not increase.
Why is the Retirement Age Changing?
The increase in the full retirement age is a result of changes in life expectancy and the financial stability of Social Security. When the program was first created, people didn’t live as long, and there were many more workers contributing to the system.
Today, Americans are living much longer, and the number of retirees is growing faster than the number of workers paying into Social Security. The original formula no longer works, so lawmakers have gradually raised the age to ensure the program’s long-term survival.
The change to a full retirement age of 67 is the latest step in a long history of adjustments to the system. The first change took place in 1983, and since then, the age has gradually increased to keep up with economic conditions and life expectancy. By 2026, anyone born in 1960 or later will need to wait until 67 to receive full Social Security benefits.
What Does This Mean for Your Retirement?
If you’re planning to retire soon or are thinking about when to claim your Social Security benefits, it’s important to weigh your options carefully. Starting your benefits earlier, like at 62, might seem tempting, but it comes with a reduced monthly payout. On the other hand, waiting until 70 could give you a bigger monthly benefit, but you’ll have to wait longer to start collecting.
As the full retirement age rises and Social Security faces financial challenges, it’s important to plan ahead. You might need to save more or adjust your retirement expectations. By understanding the changes and making informed decisions, you can better prepare for your financial future.
FAQs
1. What is the full retirement age for Social Security in 2026?
In 2026, the full retirement age (FRA) for Social Security will increase to 67 years old.
2. Can I start receiving Social Security benefits at age 62?
Yes, you can start receiving Social Security benefits at 62, but your monthly payments will be permanently reduced.
3. How much will my Social Security benefit be if I retire at 65?
If you retire at 65, you will receive about 87% of your full benefit. For example, if your full benefit is $1,800, you would receive around $1,560 per month.
4. What is the highest amount I can receive in Social Security benefits?
If you delay retirement until 70, your monthly benefit can increase to as much as 124% of your full benefit amount.
5. Why has the full retirement age increased over the years?
The full retirement age has increased because of longer life expectancies and the financial challenges faced by the Social Security program.
They are hoping you die before you can collect your money that you pay in your whole life! The corrupt government is busy giving out money to illegals or sending it to other governments! AMERICAN PEOPLE ARE THE LAST THIS GOVERNMENT THINKS OF!
Full retirement age has always been at the age 66 and 8 months for me as long as I can remember. I was born in 1958. If born 1960 or afterward it always has been the age 67 for as long as I know. I started SSI at age 65.
At the same time taking away healthcare just to give the wealthy and big businesses tax cuts with the blood,sweat, and death of hard working Americans. But when you put a convicted felon and someone who was found liable for rape YOU SHOULD EXPECT TO GET SCREWED.
Why doesn’t anyone in Washington talk about the Deficit ?
No one cares ,just keep spending.
Trump and his merry band of thrives hope most recipients receeiving social security are dead before they can collect.
Social security should never run out, each person working is paying into it, the only way it could run out is if the government steals from it, it should never be used for anything except what it was intended for, keep your greedy thriving hands out of social security