Major change in Full Retirement Age shocks many in US - Check updated FRA and how early retirement cuts your social security payments

A major change to the Full Retirement Age (FRA) is surprising many Americans, especially those getting close to retirement and planning to claim Social Security benefits. FRA is the age at which a person can receive 100% of their earned Social Security payment. For a long time, that age was 62 - but that is no longer the case. Starting in 2026, the Full Retirement Age officially rises to 67 for anyone born in 1960 or later, according to the Social Security Administration. This change is the final step in a long, gradual increase that began decades ago and has a major impact on retirement planning.

Although workers can still begin collecting Social Security as early as age 62, claiming benefits that early comes with a reduction. If your FRA is 67 and you choose to start benefits at 62, your monthly payment can be reduced by up to 30%. That cut lasts until you hit your full retirement age.

Social Security benefits are calculated using two main factors: your birth year, which determines your FRA, and your work history, including how many years you worked and how much you earned. While early claiming offers faster access to income, it also locks in smaller monthly checks.


According to SSA, here is the graphic representation of the Full Retirement and Age 62 Benefit By Year Of Birth:

According to Futbolete, this shift traces back to a 1983 congressional reform aimed at strengthening Social Security’s finances during a funding crisis. Before that law, full benefits were available at age 65. The reform gradually raised the FRA, adding a few months every year.

Since 2021, the FRA has increased by two months per year, reported CBS News. It stood at 66 years and 10 months for people born in 1959 in 2025. In 2026, the final increase took effect, pushing the FRA to 67 for those born in 1960 or later.

As a result, people born in 1960 will not qualify for full benefits until 2027, not 2026. This makes understanding your FRA more important than ever when deciding when to claim Social Security.