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If you were born anytime before 1967, you’ll probably be over the age of 60 by the end of this year. This might not seem like a major milestone, but for the Social Security Administration, it certainly is.
For decades, the SSA has been gradually changing the full retirement age (FRA) for calculating benefits based on your birth year. In 2026, this process is set to be completed, which could impact the way you time your claim.
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Here’s a closer look at how this subtle change could cost you money, even if you think it doesn’t apply to you.
Rising FRA
In an effort to shore up the Social Security system’s underlying finances, Congress enacted a law in 1983 (1) to gradually raise the full retirement age. Until then, the FRA was 65 years old. Since 2021, the FRA has been rising two months every year, per CBS (2). The final step in this process concludes in 2026, which is when FRA fully moves to 67 years.
How this impacts you depends on your age: If you were born in 1960, you would reach full retirement age at 67 in 2027. If you were born earlier, this doesn’t impact you. But if you were born after 1960, this could change the calculations you need to apply to get either reduced or enhanced benefits in retirement.
This also impacts those who have already claimed benefits but are still working before FRA. The SSA applies a retirement earnings test (3) every year to determine if some of your benefits need to be withheld due to the size of your income. This calculation, again, hinges on FRA so the move could expose you to a little extra benefits withheld.
If all this sounds confusing and convoluted, you’re not alone.
Only 21% of seniors surveyed by Nationwide (4) in 2025 were able to correctly identify their FRA. When asked about all the factors that determine their maximum benefit in retirement, only 8% answered all five correctly. Simply put, there’s a wide knowledge gap and an easy way to fix it.
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What can you do?
Instead of struggling with the system’s complexities alone, you could consider hiring an expert to help guide you.
Finding a financial advisor that suits your specific needs and financial goals is simple with Vanguard.
Vanguard’s hybrid advisory system combines advice from professional advisors and automated portfolio management to make sure your investments are working to achieve your financial goals.
With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built and would like to try to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor and they will help you set a tailored plan and stick to it.
With the right advisor by your side, you can confidently plan for Social Security regardless of how many times the system is reformed and changed.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Social Security Administration (1), (3); CBS News (2); Nationwide Financial (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
