Starting in 2026, Social Security draws a clear line that affects millions of future retirees. For anyone born in 1960 or later, the full retirement age is now set at 67. There are no more gradual increases ahead. This is the final version of the rule, and it’s already in force.
That single number changes how retirement income works in real life. It determines how much money people receive each month, and how long those payments need to last. For many households, Social Security is not a supplement. It is the foundation.
Social Security at age 67: what actually changes
The system still allows workers to claim benefits as early as age 62, but the financial impact is now sharper than before. Claiming five years early leads to a permanent reduction of close to 30% in monthly payments.
A worker entitled to $2,000 a month at full retirement age would receive roughly $1,400 if benefits start at 62. That $600 difference doesn’t go away. It repeats every month, year after year. Over a long retirement, the total gap can easily exceed $150,000.
Why claiming age now matters more than before
Social Security decisions are mostly irreversible. The choice made in your early 60s quietly shapes income for the rest of your life and you’ll simply have to push forward with the reduced income.
Life expectancy plays a major role. People who live into their late 80s or 90s often come out ahead by waiting. Those with health issues or physically demanding work histories may feel pressure to claim earlier, even knowing it reduces future income.
What many retirees underestimate is the cost of later years. Healthcare, prescriptions, home assistance and long-term care tend to increase faster than general inflation. A lower monthly check can feel manageable at 65, then restrictive at 80.
How work and savings interact with Social Security
Using retirement savings first is one common approach. Drawing from a 401(k) or IRA in the early years can allow Social Security benefits to grow untouched. That can provide higher guaranteed income later, when savings may be depleted.
Working part-time also matters. Before reaching full retirement age, earning above certain limits can temporarily reduce benefits. After 67, those limits disappear. Income from work no longer affects Social Security payments at all.
What future retirees should be thinking about now
For workers nearing 60, the rules are no longer abstract. The full retirement age of 67 is fixed, and every claiming decision comes with long-term consequences.
Key factors that usually drive the decision include:
- Expected longevity based on personal and family health
- Size and flexibility of retirement savings
- Need for immediate income versus long-term stability
There is no universal answer that fits everyone. Some people need the income as soon as possible. Others can afford to wait and benefit from higher lifetime payments. What has changed is the cost of getting it wrong.