In a significant shift, the full retirement age for Social Security will reach 67 in 2026, impacting individuals born in 1960 and later, as reported by CBS News. This adjustment means those born in 1960 won’t be eligible for full benefits until they turn 67 in 2027, marking a crucial milestone in the ongoing evolution of the Social Security system.
This legislative change is the culmination of a series of increases enacted through reforms in the 1980s aimed at stabilizing the financial future of the Social Security program. Historically, individuals were able to claim full benefits at the age of 65. However, subsequent reforms gradually raised this threshold to better ensure the sustainability of the system amid shifting demographics and financial pressures.
While workers can still opt to claim Social Security as early as 62, doing so comes with significant repercussions; it results in a permanent reduction of monthly benefits by approximately 30%. Therefore, waiting until the full retirement age can substantially enhance financial security for retirees, allowing them to maximize their benefit amounts.
In addition to the change in retirement age, Social Security recipients can anticipate a 2.8% increase in benefits next year. The Social Security Administration confirmed this adjustment in October, which will result in an average increase of $56 per month for beneficiaries. This annual cost-of-living adjustment (COLA), effective in January, is designed to offset inflationary pressures and is projected to benefit around 75 million Americans.
Over the past decade, Social Security benefits have increased at an average annual rate of about 3.1%, reflecting ongoing efforts to align benefits with the rising costs of living. As these changes unfold, the landscape of Social Security continues to evolve, ensuring the program meets both current and future needs of its beneficiaries.
