Starting from 2026, Americans will be able to claim full Social Security benefits at a new threshold called the “Full Retirement Age” (FRA), which will impact those born in 1960 and later. According to a Congressional amendment passed in 1983, by 2026, the FRA for Americans born in 1960 and later will increase to the upper limit set by the law, which is reaching the age of 67.
The Full Retirement Age is calculated based on the worker’s birth year, and the amount of Social Security benefits a person can receive each month depends on their work history and earnings during their career. While Americans can start claiming Social Security benefits as early as age 62, doing so will permanently reduce their monthly benefit by about 30% compared to waiting until Full Retirement Age.
Starting from 2026, the Full Retirement Age will see its final planned increase, marking the last step in the age adjustments set by the reform plan passed by Congress in 1983. This reform aims to secure the financial stability of the Social Security program. Prior to this, individuals could claim full retirement benefits at age 65, but the plan gradually pushed the Full Retirement Age higher, culminating in the adjustment set to take effect in 2026.
Since the year 2021, the Full Retirement Age has been increasing by two months annually. Currently, for individuals born in 1959, the Full Retirement Age is 66 years and 10 months. Next year will see the final step of this plan, raising the Full Retirement Age to 67 for all those born in 1960 and later.
With the Full Retirement Age set at 67, individuals born in 1960 will need to wait until 2027 to qualify for full Social Security benefits, instead of 2026 as previously anticipated.
Once reaching Full Retirement Age, beneficiaries will no longer face permanent reductions in their monthly benefits. Opting to claim benefits later will result in increased amounts based on the age at which they claim, but the maximum increase caps at age 70, and claiming after that age will not further raise the benefit amount.
According to the Social Security Administration’s announced adjustment plan for Social Security and Supplemental Security Income (SSI) for 2026 at the end of October, the Cost-of-Living Adjustment (COLA) for the upcoming year is set at 2.8%. This will result in higher retirement benefits for Social Security recipients starting from January next year. It is estimated that the average monthly Social Security benefit for retired workers will increase to $2,071 in 2026 compared to $2,015 in 2025.