4. Reaching Full Retirement Age (FRA)

Your Social Security payout will change dramatically in the year you reach your Full Retirement Age. Depending on your birth year, your FRA falls between 66 and 67. If 2027 is the year you hit this milestone, two major shifts will occur to your monthly payout.

First, the restrictive earnings test relaxes significantly. In the months leading up to your FRA birthday, the earnings limit is much higher. In 2026, individuals reaching FRA were allowed to earn up to $65,160 in the months prior to their birthday, with only $1 withheld for every $3 earned above the limit. Once your birth month arrives, the earnings test disappears completely. You can earn as much as you want, and the SSA will no longer withhold any portion of your benefit.

Second, if you had benefits withheld in previous years due to the earnings test, the SSA will automatically recalculate your monthly payment. They adjust your payout formula to give you credit for the months you did not receive a full check. This recalculation results in a higher monthly payout going forward, meaning your 2027 checks could see a substantial and permanent boost.