The US Retirement Age Increase 2026 marks the final step in a long-planned change to Social Security rules. Under this update, the full retirement age, or FRA, is now 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 designed years ago to reflect longer life expectancy and improved health among older Americans.

Why the Retirement Age Was Raised

In 1983, Congress passed legislation to gradually increase the normal retirement age. At that time, the full retirement age was 65. As Americans began living longer and spending more years in retirement, the government adjusted Social Security to remain financially sustainable. The increase was introduced slowly, adding a few months for each birth year, and the process is now complete in 2026.

Eligibility and Earnings Rules

To receive Social Security benefits, you must meet the 2026 age eligibility rules. Benefits can still be claimed as early as age 62, but doing so reduces monthly payments permanently by about 30 percent. For those who work before reaching full retirement age, Social Security may withhold part of the benefits. In 2025, $1 is withheld for every $2 earned above $22,320. After reaching full retirement age, $1 is withheld for every $3 earned above $59,520 until the month you reach FRA.

How Benefits Are Calculated

Social Security payments are based on lifetime earnings and the number of years worked while paying taxes. As of June 2025, the average monthly benefit is $1,918. While this helps cover basic expenses, it may not be enough for a comfortable lifestyle, especially in large cities. Experts estimate that a single person may need around $2.3 million saved to retire comfortably in a major metropolitan area.

Delaying Retirement for Higher Payments

Delaying benefits beyond full retirement age can increase monthly payments by roughly 8 percent per year until age 70. For instance, a $2,000 benefit at age 67 could grow to about $2,500 by age 70. This strategy can significantly improve long-term retirement income and provide more financial security in later years.

Applying for Benefits

Those who reach full retirement age are eligible for full Social Security benefits. Applications can be submitted 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.