December 2nd 2025.
Starting in 2026, Americans who were born in 1960 or later will have to wait until the age of 67 to receive their full Social Security benefits. This change marks the end of a gradual phase-in that began in the 1980s, where the full retirement age has been slowly increasing from 65. This means that those who are planning to retire soon should carefully consider the timing of their benefit claims.
For individuals born in 1959, the last year that their full retirement age will be 66 is in 2025. After that, the age will continue to increase until it reaches 70. It's important to note that claiming benefits too early will result in a permanent reduction in the monthly income received. According to the Social Security Administration, beneficiaries can start receiving benefits as early as 62 years old, but the monthly amount will be reduced for each month before the federal retirement age.
In 2026, there will be a few changes taking place. Firstly, individuals born in 1960 or later will only be eligible for full benefits at the age of 67. Additionally, the gradual increase in full retirement age that has been in effect since 1983 will come to an end. Those who choose to retire early will face significant reductions in their lifetime benefits. This change is a reflection of the longer life expectancy and financial strain on the Social Security trust fund over the years.
However, this change may complicate retirement planning for many Americans. With the full benefits being delayed, people may need to carefully budget their expenses, rely on their savings for a longer period of time, or continue working for longer than they had initially planned. On the other hand, delaying claiming benefits beyond the full retirement age will result in higher monthly payments. Waiting until the age of 70 can substantially increase the monthly benefits received. Unfortunately, not everyone can afford to take the financial hit associated with receiving early benefits.
It's worth noting that while the average life expectancy has increased, the Center for Disease Control and Prevention states that it is currently at 78 years old. This means that by waiting until the full retirement age to receive benefits, the average retiree will only have less than a decade of relaxation before their passing. This change in the Social Security retirement age also has implications for transgender service members. The U.S. Air Force has recently announced that it will deny retirement pay to transgender individuals who qualify, adding another layer of complexity to the retirement planning process.
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