WASHINGTON, D.C. — A long-planned change to the Social Security system has now fully taken effect: the Full Retirement Age (FRA) is officially 67 for everyone born in 1960 or later.
The adjustment marks the end of a gradual increase that began decades ago under reforms designed to strengthen Social Security’s long-term finances. While Americans can still begin claiming retirement benefits as early as age 62, waiting until age 67 is now required to receive full scheduled retirement benefits for millions of future retirees.
What Has Changed?
The change does not raise the earliest age someone can claim Social Security retirement benefits.
Instead, it affects the age at which beneficiaries qualify for 100% of their scheduled retirement benefit.
Under the current rules:
- You can still claim benefits as early as age 62, but monthly payments are permanently reduced.
- Waiting until age 67 allows eligible workers born in 1960 or later to receive their full retirement benefit.
- Delaying benefits beyond age 67—up to age 70—can further increase monthly payments through delayed retirement credits.
Why the Retirement Age Increased
The gradual increase was established through legislation passed in 1983 to help improve Social Security’s long-term financial outlook.
At the time, lawmakers responded to concerns about the program’s future by introducing several reforms, including a phased increase in the Full Retirement Age.
Because the change was spread over many years, each successive generation experienced only a small adjustment until the transition was completed.
How Claiming Early Affects Benefits
Although many Americans retire before age 67, claiming Social Security before reaching Full Retirement Age results in permanently lower monthly benefits.
For example, someone eligible for a full monthly benefit at age 67 who decides to claim at age 62 could receive significantly less each month for the rest of their life.
On the other hand, delaying benefits beyond Full Retirement Age can increase monthly payments, up to age 70.
The best claiming strategy depends on several personal factors, including health, expected longevity, employment plans, and overall retirement savings.
Medicare Eligibility Has Not Changed
One point that often causes confusion is Medicare.
The recent change affects Social Security retirement benefits only.
Eligibility for Medicare generally continues to begin at age 65, meaning many retirees may enroll in Medicare before reaching their Full Retirement Age for Social Security.
What This Means for Future Retirees
Workers approaching retirement may wish to review:
- Their expected Social Security benefit amount.
- The impact of claiming benefits early versus waiting.
- Other retirement income sources, including pensions and retirement savings.
- Healthcare costs before and after Medicare eligibility.
Financial professionals often recommend evaluating multiple claiming scenarios before deciding when to begin receiving benefits.
Bottom Line
The long-planned increase in Social Security’s Full Retirement Age to 67 is now fully in effect for people born in 1960 or later. Americans can still begin collecting retirement benefits as early as age 62, but doing so results in permanently reduced monthly payments. Understanding the difference between the earliest claiming age, Full Retirement Age, and delayed retirement credits can help future retirees make more informed decisions about when to start receiving Social Security benefits.
