The US Retirement Age Increase 2026 marks the final step of a long-planned change in Social Security rules. Under this update, the full retirement age, also called FRA, becomes 67 for everyone born in 1960 or later. People born between 1943 and 1956 reach full retirement at 66 and 4 months, while those born after 1960 must wait until 67 to receive full benefits. This change was decided many years ago to match longer life expectancy and better overall health among older Americans.
Why the Retirement Age Was Increased
In 1983, Congress passed legislation to gradually raise the normal retirement age. At that time, the full retirement age was 65. Since people were living longer and spending more years in retirement, the government adjusted the system to keep Social Security financially stable. The increase was introduced slowly, adding a few months for each birth year, and the process is completed in 2026.
Eligibility and Earnings Rules
To receive Social Security benefits, you must meet the Social Security Age Eligibility 2026 standards. You can still claim benefits as early as age 62, but this leads to a permanent reduction of about 30 percent in your monthly payment. If you work before reaching full retirement age, Social Security may temporarily withhold some benefits. In 2025, $1 is withheld for every $2 earned over $22,320. Once you reach full retirement age, the rule becomes $1 withheld for every $3 earned over $59,520, and this applies only until the month you reach FRA.
How Benefits Are Calculated
Social Security payments are based on your lifetime earnings and the number of years you worked and paid taxes. As of June, the average monthly benefit is $1,918. While this amount helps cover basic needs, it often does not fully support a comfortable lifestyle, especially in large cities. Studies suggest a single person may need around $2.3 million saved for a comfortable retirement in a major metropolitan area.
Delaying Retirement for Higher Payments
If you delay claiming benefits beyond full retirement age, your monthly payment increases by about 8 percent per year until age 70. For example, a $2,000 benefit at age 67 could grow to roughly $2,500 at age 70. This option can significantly improve long-term retirement income.
Applying for Benefits
People who reach full retirement age are eligible for full Social Security benefits. Applications can be made through the official Social Security Administration website at www.ssa.gov.
Disclaimer
This article is for informational purposes only and does not provide legal or financial advice. Social Security rules, benefit amounts, and eligibility criteria may change. For accurate and personalized information, always consult the Social Security Administration or a qualified financial advisor.