Changes In Social Security Will Impact Boomer Retirement In 2026— Here’s How

Under the reconstruction of the 1983 congressional reform, the FRA is scheduled to reach 67, leaving boomers born in 1960 not being able to qualify for their full benefits until 2027 over 2026.

Baby boomers looking to retire in 2026 should pay attention to some of the new rules being handed down by Social Security, as the full retirement age (FRA) is scheduled to make a final increase, CBS News reported.

Under the reconstruction of the 1983 congressional reform, the FRA is scheduled to reach 67, meaning boomers born in 1960 will not qualify for their full benefits until 2027, instead of 2026. The change will affect those born between 1960 and 1964, in addition to Generation X, identified as Americans born between 1965 and 1980.

The change comes at a time when several affected workers don’t feel financially prepared for retirement. Numbers from Vanguard research show only four in 10 Americans say they’re on track to maintain their current lifestyle when they retire. Max Richtman, CEO of the advocacy group National Committee to Preserve Social Security and Medicare, called the cuts effective and feels it gives potential retirees time to prepare better. “Raising the retirement age is an effective cut in lifetime benefits for younger baby boomers, members of Gen X, and all the generations after,” he said.

“Having time to plan, however, does not mean they have been able to put aside more for retirement, considering the stagnation of real wages and the rising cost of college tuition, home prices, and other key living expenses.”

According to Business Insider, the national retirement age is 66 or 67 for a majority of baby boomers, which is also the same age which beneficiaries can fully collect their Social Security amount. People waiting until 70 to file will receive the highest monthly payment.

So, where will some of the changes come in? The costs associated with Medicare will increase. Beneficiaries can expect higher out-of-pocket costs, including premiums for Medicare Part B, jumping by roughly 10%, as a result of the price tag of healthcare skyrocketing.

Beneficiaries can also expect to continue to have their Social Security income to be taxed. As a result of President Donald Trump signing the One Big Beautiful Bill Act in July 2025, taxpayers 65 and older have the luxury of claiming up to $6,000 in addition to their standard deduction. With the new measure scheduled to last through 2028, it builds on an existing tax exemption for seniors. Because of this, Americans falling in the affected age bracket filing for 2025 tax returns can write off as much as $23,750.

Joint filers over 65 will be able to claim as much as $46,700.

Despite the new bill, there is an expectation that the Social Security fund will be obsolete by the mid-2030s. While checks won’t stop being mailed out, retirees could see smaller benefit amounts unless Congress secures more money. With the new changes and data regarding minimal funds, Richtman thinks those looking to retire need to do their due diligence to plan accordingly. “These younger cohorts will have to try their best to plan for retirement, knowing that they cannot collect full benefits until 67,” he said.