New Age For Collecting Social Security Begins At 67

Rising life expectancy has shifted the retirement age from 65 to 67 for those born in 1960 and later.

Retirement planning is evolving, with longer life expectancies pushing the typical retirement age from 65 to 67.

For those born in 1960 or later, the Social Security Full Retirement Age (FRA) is 67, the age at which individuals receive 100% of their earned benefits. Benefits can be claimed as early as 62 at a reduced rate or delayed until 70 for higher payments. But the shift from the traditional retirement age of 65 going up to 67 reflects longer life expectancies and represents a gradual transition rather than an abrupt change, according to Develop Galveston County.

As a result, retirement planning timelines are shifting, and federal standards are evolving to keep pace. For generations, 65 has been considered the standard retirement age for Americans. However, those born in 1959 will now reach their Full Retirement Age (FRA) in 2025 at 67 years and 10 months.

The gradual adjustments carry significant financial implications for those who claim benefits early and receive reduced monthly payouts. The shift is making careful retirement planning more important than ever.

Year of birth is the key factor in determining eligibility for full Social Security benefits. Those born in 1954 or earlier can retire at 66, while additional months are added for those born between 1955 and 1959. Individuals born in 1960 or later must wait until age 67 to receive full benefits.

Timing is critical when claiming Social Security benefits, as it directly affects the amount received. Retiring at 62 results in a 29–30% reduction in benefits, while delaying retirement past full retirement age can increase benefits by up to 8% per year, totaling a potential 32% boost.

Those looking for ways to delay retirement and secure full benefits could consider gradually reducing work hours instead of stopping work entirely, taking contract or part-time roles to cover expenses without tapping into retirement savings, securing extra income through renting out unused property, or opting for a part-time role that offers benefits.

The rise in the Full Retirement Age was done to help ensure the long-term financial sustainability of Social Security for future generations. As lifespans increase, the program’s payouts may be spread over a longer period, forcing many to work longer than their elders had to.