Most Americans still believe 65 is the magic retirement number. Wrong! For anyone born in 1960 or later, the Social Security retirement age for full benefits is now 67. This two-year shift quietly cuts thousands of dollars from millions of retirements. Here’s the simple story behind it.
Why Did They Change It?
Back in 1935, when Social Security started, people didn’t live very long. The average life expectancy was only about 61. Retiring at 65 meant just a few years of benefits. Fast-forward to today: many of us live past 80. That’s 15–20 extra years of monthly checks the system has to pay.
At the same time, the giant Baby Boomer generation (born 1946–1964) started retiring. Fewer workers are now supporting more retirees. By the early 1980s, experts warned Social Security would run out of money by 1983 without big changes.
The 1983 Fix: Raise the Age Slowly
Instead of cutting benefits right away, Congress chose to raise the full retirement age from 65 to 67. They did it gradually so no one got shocked.
Quick Birth-Year Cheat Sheet
| Birth Year | Full Retirement Age |
|---|---|
| 1937 & earlier | 65 |
| 1943–1954 | 66 |
| 1960 & later | 67 |
If you were born in 1955–1959, it’s somewhere between 66 and 67 (adds 2 months per year).
How Much Money Are You Really Losing?
- Claim at 62 → up to 30% less every month for life
- Claim at 65 (when full age is 67) → about 13% permanent cut
- Wait until 70 → 24–32% bonus every month
Example: Someone entitled to $2,000 at age 67 gets only $1,400 if they start at 62. That’s $7,200 lost every year!
Smart Moves You Can Make Right Now
- Check your exact age at ssa.gov
- Use their calculator to see real numbers
- If healthy, consider waiting past 67 for the 8% yearly bonus
- Save extra in 401(k) or IRA to cover the gap
- Medicare still starts at 65 — good news!
The Social Security retirement age change happened to keep the program alive longer. It worked — the trust fund is now safe until at least 2035. But it means most of us have to work longer or live on less.
Don’t let this quiet rule steal your retirement. Know your number, plan early, and retire stronger.