With the Social Security Administration (SSA) announcing a rather drastic shift in the full retirement age (FRA), citizens are curious to find out when this change will be effective. As per the change that is set to take place, the full retirement age at which one can claim 100% of their Social Security benefit will be around 67 years old for all citizens born in 1960 or later. While saying goodbye to the retirement age as we know it, we are also saying hello to future amendments that plan on extending working years in line with increased life expectancy.
Citizens need to understand more about this change and how this change can affect them in the long run once it comes into effect.
Understanding the change in FRA
Full retirement age has always been specified as the age at which all individuals can receive their full monthly Social Security payment based on their lifetime earnings. Thus far, the full retirement age has always been 62. The new change to the FRA makes it clear that the longer citizens wait to receive their retirement benefits, the more they will benefit.
It has now become official that all citizens must reach the age of 67 to collect full benefits. This move to raise the FRA is based on the idea that Americans generally live longer. According to the SSA, this adjustment in FRA will allow people to live a happy life for longer without incurring long-term financial difficulties because they started claiming their full retirement benefit too early, and they are living longer than expected.
Implications of the amended FRA for citizens
It must be understood that the change to the FRA doesn’t mean that citizens can’t choose to retire at 62. The only adjustment is that those who retire at 62 will receive only 70% of their retirement benefit and not their full retirement benefit.
However, citizens who choose to delay their retirement age beyond 67 will receive their full benefit amount and more if they delay their FRA to 70 years. It is advisable for citizens who are healthy to opt to delay their retirement for as long as possible so as to receive higher Social Security checks when the time to collect retirement benefits arises.
Looking at 3 Social Security mistakes to avoid emphasizes the importance of proper planning when it comes to the collection of Social Security benefits, which becomes the financial lifeline for many. What the FRA change also indicates is that some Americans will need to revisit their initial retirement plans and perhaps work longer.
When will this new amendment come into play?
Social Security’s official information on Full Retirement Age indicates that this change will come into effect starting on January 1, 2026. With the change set to occur soon, citizens should take action by:
- Checking if they qualify for retirement benefits by ensuring they have a Social Security Number and 40 work credits, which amounts to 10 years of work whereby Social Security taxes have been paid.
- Noting the different retirement choices and understanding that waiting until 70 years to retire can yield a larger benefit amount.
- Acknowledging that the FRA may very well increase considerably in the coming years, and citizens working towards retirement may need to consider these possible future amendments as well.
At the beginning of next year, the FRA will change and will cause many Americans to amend their retirement plans in the process, too. This month, the group of retirees who worked longer and chose to start collecting their retirement benefits at 70 years old will receive their $5,000 SSA checks. This provides all the more reason as to why Social Security beneficiaries should rather wait until the FRA of 70 to start collecting their retirement benefits.
Disclaimer: This content is informational only and does not supersede or replace the SSA’s or IRS’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to SSA.gov or IRS.gov, or by consulting your local SSA field office or tax professional.
