Since 1983, Social Security’s retirement system has been changing slowly but significantly. People are making these changes as part of a long-term plan to keep the trust fund solvent and adapt to changing economic and social conditions in the US.
A Big Change Coming in 2026: The End of the Customary Retirement Age
In 2026, the last part of these changes will be completed, which will mean the end of the standard Full Retirement Age (FRA) as we know it. To take into account the longer life expectancy and the changed economy, this change is necessary. This change is needed to keep the Social Security system stable and protect future payments since people are living longer and getting benefits for longer periods of time than before.
Born After 1960? This is how your full retirement age changes:
As a result of these changes, the FRA will change for people born after 1960. Previously, the FRA was 65. Now, people born after 1960 have to wait until they are 67 years old before they can get full Social Security payments.
As a guideline:
- If you were born in 1959, your FRA will be 66 years and 10 months.
- People born after 1960 will have to wait until they are 67 years old to get all of their benefits.
How Early Social Security Claims Affect Your Life
The amount of Social Security payments you get is directly related to how old you are when you apply for them. You will permanently lower your monthly payments if you decide to claim benefits before you hit your FRA. For example, if you choose to start getting benefits at age 62, which is the oldest age you can, your monthly payment will be about 30% less than if you waited until your FRA.
Key Strategies for Getting the Most Out of Your Social Security Benefits
When to start getting Social Security benefits is a very important choice that will rely on your personal situation as well as your financial health. People who are in good health and have a solid financial base might want to wait to claim benefits so that they can get a bigger monthly payment. If, on the other hand, you think you might not live as long, getting your benefits earlier might be the best option.
How to Plan Your Social Security Benefits in Real Life
Here are some helpful steps you can take to make sure you make the best choice for your future:
- Check your Social Security statement often to stay up to date on your pay and expected benefits.
- You can use the SSA Retirement Estimator and other tools to see how your benefits will change based on when you start getting them.
You can make smart choices that will help you get the most out of your Social Security payments and protect your financial future if you carefully consider your options and use the resources that are available to you.
