Social Security Raises Full Retirement Age for 2026: Starting in 2025, individuals born in 1960 or later must wait until age 67 to receive full Social Security benefits. This marks the final phase of a gradual increase that began with the 1983 Social Security Amendments. The change was implemented to account for longer life expectancies and ensure the program’s long-term sustainability.
Retirement Age Timeline
| Birth Year | Full Retirement Age |
|---|---|
| Before 1955 | 66 years |
| 1955-1959 | 66 years + 2-10 months* |
| 1960+ | 67 years |
*Increases by 2 months per birth year from 1955-1959
Why the Retirement Age Is Increasing
The Social Security system faces financial pressures due to demographic changes. As Americans live longer, they collect benefits for more years while fewer workers pay into the system. Raising the retirement age helps address this imbalance by reducing the total payout period. The Social Security Trustees project these changes will extend the program’s solvency, though additional reforms may still be needed.
How Claiming Age Affects Your Benefits
Your monthly benefit amount varies significantly based on when you choose to claim. The system is designed to provide approximately the same total lifetime benefits regardless of when you start collecting, assuming average life expectancy.
Benefit Reduction/Increase by Claiming Age
| Claiming Age | % of FRA Benefit | Example (FRA = $1,000) |
|---|---|---|
| 62 | 70% | $700 |
| FRA (67) | 100% | $1,000 |
| 70 | 124% | $1,240 |
Public Concerns About the Changes
Many Americans worry these changes don’t account for real-world challenges. Physical demanding jobs become harder with age, and some workers face health issues that make continued employment difficult. There’s also concern about age discrimination in hiring and the ability of older workers to find suitable employment.
Social Security Tax Cap Details
The current system only taxes wages up to a set limit, which many argue places disproportionate burden on middle-class workers.
2025 Social Security Tax Facts
| Feature | Detail |
|---|---|
| Taxable wage cap | $168,600 |
| Tax rate (employee) | 6.2% |
| Maximum employee contribution | $10,453 |
| Income above cap | Not taxed |
Retirement Planning Recommendations
With the changing rules, experts recommend a multi-pronged approach to retirement planning. First, verify your exact full retirement age based on your birth year. Next, use the SSA’s online calculators to estimate benefits under different scenarios. It’s also wise to build additional retirement savings through 401(k)s or IRAs to supplement Social Security income.
Application Process Overview
Applying for benefits has become increasingly streamlined, with online applications typically processed within 2-4 weeks.
Application Timeline
| Step | Timeframe | Action |
|---|---|---|
| Initial preparation | 6 months before | Gather documents, review earnings record |
| Application submission | 3-4 months before desired start date | Complete online or in-person application |
| Processing | 2-4 weeks | SSA reviews application |
| First payment | 1 month after entitlement date | Direct deposit or check |
Common Misconceptions
Several myths persist about Social Security that can lead to poor planning decisions.
Myth vs Reality
| Myth | Fact |
|---|---|
| “I should always claim at 62” | Early claiming permanently reduces benefits by up to 30% |
| “Social Security is going away” | The program can pay 75% of benefits even if trust funds are depleted |
| “Only retirees get benefits” | 20% of beneficiaries are disabled workers or dependents |
Frequently Asked Questions
Q: Can I work while collecting Social Security?
A: Yes, but if you’re below full retirement age, earnings over $21,240 (2025 limit) will temporarily reduce benefits.
Q: Will my benefits be taxed?
A: Depending on your combined income, up to 85% of benefits may be taxable.
Q: How is my benefit amount calculated?
A: Based on your highest 35 years of earnings, adjusted for inflation.