#2 Full Retirement Age Reaches 67

For those born in 1960 or later, the Full Retirement Age (FRA) will officially reach 67 years in 2026. This marks the final step in the gradual increase from age 65 to 67 that began decades ago.

What does this mean? If you claim Social Security benefits at age 62, your monthly payment will be permanently reduced by up to 30%. Waiting until your full retirement age ensures you receive the full benefit, while delaying until age 70 adds delayed retirement credits and significantly boosts lifetime income.

This decision can affect your ability to cover major expenses such as health insurance costs, mortgage payments, credit card debt, and personal loans. That’s why many retirees choose to speak with a financial advisor or retirement planning attorney before filing.

The best strategy depends on your health, family history, and overall financial situation. Coordinating Social Security with other income sources — like pensions, IRA accounts, 401(k) plans, annuities, and insurance payouts — can help you maximize long-term security.

Careful retirement planning ensures your benefits align with your lifestyle and financial goals.