USA Retirement Age Increase:The retirement age in the United States is changing in 2026, marking the final step in a long-planned adjustment to Social Security rules. The full retirement age, or FRA, is now 67 for anyone born in 1960 or later. Those born between 1943 and 1956 reach full retirement at 66 and 4 months. This change reflects improvements in health and longer life expectancy among Americans. It also ensures that the Social Security system remains financially sustainable for future generations.
Why the Retirement Age Was Raised
The increase in retirement age began with legislation passed by Congress in 1983. At that time, the full retirement age was 65. As people started living longer and spending more years in retirement, the government recognized the need to gradually raise the age for full benefits. The adjustment added a few months for each birth year, and 2026 marks the completion of this process. This gradual approach gave workers time to plan for later retirement and adjust their savings strategies.
Eligibility and Earnings Rules
Even though the full retirement age is now higher, Americans can still claim Social Security benefits as early as age 62. However, doing so reduces monthly benefits permanently by about 30 percent. People who continue working before reaching full retirement age may have some benefits withheld if they earn above certain limits. In 2025, $1 is withheld for every $2 earned above $22,320. After reaching full retirement age, $1 is withheld for every $3 earned above $59,520 until the month the person reaches FRA. Understanding these rules helps workers plan when to retire and how much income to expect.
How Benefits Are Calculated
Social Security payments depend on a person’s lifetime earnings and the years worked while paying Social Security taxes. As of June 2025, the average monthly benefit is $1,918. While this helps cover basic living costs, experts warn that it may not be enough for a comfortable retirement, especially in large cities. A single person may need around $2.3 million in savings to maintain a comfortable lifestyle in a major metropolitan area.
Delaying Retirement for Higher Benefits
Delaying benefits beyond the full retirement age increases monthly payments by about 8 percent per year, up to age 70. For example, a $2,000 monthly benefit at age 67 could grow to roughly $2,500 by age 70. This strategy can improve long-term retirement income and provide greater financial security in later years.
Applying for Benefits
Once individuals reach full retirement age, they can apply for full Social Security benefits. Applications are available through the official Social Security Administration website at www.ssa.gov.
Disclaimer: This article is for informational purposes only and does not provide legal or financial advice. Social Security rules, benefit amounts, and eligibility criteria may change. For accurate and personalized information, consult the Social Security Administration or a qualified financial advisor.
