For decades, a majority of Americans have based their retirement plans on the assumption that they would be eligible to start receiving full Social Security benefits at age 67. But that is now changing. In a recent development, the Social Security Administration has issued new guidelines that redefine the full retirement age.
For those born in 1960 or after, the full retirement age is now higher than 67. The move is among several aimed at shoring up the Social Security system as people live longer and the nation’s population grows older.
67 Is No Longer Full Retirement Age
The late retirement age is outside the box. Social Security has been tweaking retirement rules for years to stay in line with shifts in life expectancy and the number of people entering retirement. Social Security benefits for longer than in previous years, as lifespans have grown longer and people have stayed healthier in old age. This puts financial strain on the system.
To answer, the government is now asking people to stay in the workforce a little longer before they can claim full benefits. That means the old 67, which used to be considered the age of full retirement, is no longer the endgame. The true “full” retirement age has since edged a bit closer to 68, depending on when you were born.
New Rules on Full Retirement Age for 2026
Starting in 2026, those born in 1960 or later will have a higher full retirement age of 67 years and a handful of additional months. Some reports even indicate this may continue to rise, to age 68, as part of a larger bid to shore up the future of Social Security. That doesn’t preclude you from retiring earlier, but it does mean that if you choose to take back your checks prior to reaching full retirement age, those monthly checks are permanently diminished.
If you were to retire at 62, for example, your benefit would be reduced by up to 30%. So, it behooves those nearing retirement to learn exactly what that means for the retirement they had been planning to make.
Social Security Ups the Ante Retirement Age Keeps Climbing
So with full retirement age now nudging above 67, the message seems clear: Retirees are supposed to work longer before they can claim their full benefits. And this can be an issue for people who have planned to retire sometime in their mid 60s and at 65 or 67. For a lot of Americans, that involves re-evaluating how much longer they will work, and whether their retirement savings and health will stretch if they must wait still longer for their full retirement benefits.
The government insists that it is necessary to preserve the system for future generations, but individuals will have to take a greater role in planning for their retirement in response.
The Unmaking of the American Working Class
It’s no longer one-size-fits-all when it comes to retirement. There used to be a certain arc to retirement: You would retire at 65, begin taking your full Social Security benefits soon after, and then enjoy a couple of decades of leisure before meeting your maker. Many older people today who are in good health still work into their late 60s and 70s or later.
For some, it’s more a question of working longer, in the hope of increasing their monthly benefit, while others simply can’t afford to leave it alone. Rising living costs, low pensions, and growing healthcare needs have all played their part. As full retirement age rises now to older than 67, more Americans might see retirement not as a destination, but as a path to a softer landing, one that may involve some part-time work or self-employment.
What Should You Be Doing to Prepare for This Change
If you are in your 50s, or if you have reached your early 60s, now is the time to assess your retirement plans. Begin by consulting your estimated benefit at the website for Social Security. Consider whether you can put off retirement to collect the full sum. It’s also smart to consider healthcare and inflation in your life beyond retirement planning.
Social Security Program
The Social Security program dates back to 1935 when life expectancies were shorter and fewer people reached old age. Today, the retiree population is expanding rapidly as the baby boomers age.
Increasing the full retirement age is one of a number of proposals used to help the system last longer. While that answer might suffice for the next year or two, many believe further reform will be necessary down the road as new taxes, and different types of money.
FAQs
What is the new retirement age after 67?
It is full retirement age is now past 67 and may rise to as high as 68 in future updates for those born in 1960 or later.
Can I still retire at 62?
Yes, but remember if you retire at 62, your Social Security payments will permanently be reduced by as much as 30%.
Why is the retirement age going up?
With people living longer and drawing on benefits for more years, the system has to be recalibrated to remain fiscally sound.