If you were born in 1960 or later, congratulations — your Full Retirement Age (FRA) is now officially 67. This is the biggest Social Security rule change in decades, and it affects everything from your monthly check to when you should file. Here are the seven updates you absolutely need to know right now.
1. Your Full Retirement Age Is Now 67 (No Exceptions)
- Born 1959 or earlier → FRA = 66 + a few months
- Born 1960 or later → FRA = exactly 67
This two-year jump means you must wait longer for 100% of your benefit — or accept a permanent reduction if you claim early.
2. Claiming at 62 Now Cuts Your Check by 30% (Forever)
Under the old rules (FRA 65), claiming at 62 reduced benefits by 20–25%.
Now, with FRA at 67:
| Claiming Age | Permanent Reduction |
|---|---|
| 62 | –30% |
| 63 | –25% |
| 64 | –20% |
| 65 | –13.3% |
| 66 | –6.7% |
| 67 | 0% (full benefit) |
That 30% cut at 62 is lifelong and also reduces spousal and survivor benefits.
3. Waiting Past 67 Still Gives You an 8% Yearly Bonus
Delaying benefits until age 70 now boosts your check by 24% above the full amount (8% per year × 3 years). For many people, this is the single biggest pay raise you’ll ever get.
4. The “Earnings Test” Trap Is Tougher Between 62–67
If you work while collecting early benefits (before age 67), Social Security takes back $1 for every $2 you earn above $22,320 (2025 limit). In the year you reach 67, the limit jumps to $59,520 and only counts earnings before the month you hit FRA.
5. Higher FRA = Higher Unemployment Risk in Your Early 60s
New research shows the jump from 65 → 67 increased unemployment rates for 62–64-year-olds by nearly 2 percentage points. Many workers get pushed out of jobs early but can’t claim full benefits yet. Plan your emergency fund accordingly.
6. Medicare Still Starts at 65 — Creating a Two-Year Gap
Social Security FRA is now 67, but Medicare still begins at 65. If you retire at 62–64, you’ll need private health insurance or COBRA for those expensive years before Medicare kicks in.
7. Future Changes Could Push FRA to 68 or 69
Lawmakers are already discussing another increase. The 2025 Social Security Trustees Report says the trust fund runs dry by 2035 without changes. Raising FRA again is the politically easiest fix.
Quick 2025–2026 Action Checklist
| Your Birth Year | Full Retirement Age | Best Strategy Right Now |
|---|---|---|
| 1959 | 66 + 10 months | You’re already there — file anytime |
| 1960–1961 | 67 | Decide: take reduced at 62 or wait |
| 1962+ | 67 | Build a bigger savings bridge 62–67 |
Bottom line: The Social Security full retirement age hitting 67 isn’t just a number change — it’s a complete shift in retirement math. Start adjusting your plan today, because the old “retire at 65” playbook no longer works.