Social Security’s full retirement age (FRA) is set to change for the next two years. The changes will impact the retirement benefits seniors are eligible to receive in 2025 and 2026. In 2024, the full retirement age for those turning 66 is 66 years and 8 months.
This applies to individuals born in 1958. Come 2025, the FRA will shift to 66 years and 10 months for those turning 66. This affects those born in 1959.
These seniors will have to wait longer to avoid a lifetime reduction in benefits. By 2026, the FRA will move to 67 for individuals who haven’t already turned 66. This applies to those born in 1960 and later.
Since the FRA will be fixed at 67 for anyone born in 1960 or beyond, it will no longer change for newly eligible retirees starting in 2027. Anyone turning 66 in 2027 or after can claim their full retirement benefits at 67 with no penalties. It’s positive news for future retirees that the FRA stops moving later after 2026.
Full retirement age adjustments upcoming
Originally, the FRA was set at 65 for everyone. However, amendments to Social Security in 1983 pushed it back.
These phased changes were implemented over time, affecting current retirees. When lawmakers made this adjustment in the 1980s, it effectively served as a benefits cut for future seniors. Individuals were left with two choices: delay claiming Social Security benefits or face a reduction in benefits.
This results in less lifetime income compared to those who could claim their full benefit earlier. Once the FRA ceases to move after 2026, it is unlikely that it will change again. Although some policymakers have suggested moving the FRA to address Social Security’s financial issues, this proposal hasn’t gained widespread support.
The program’s trust fund could run dry by 2035. As such, future retirees can be somewhat reassured that, barring new legislation, the FRA will remain stable post-2026. For now, future retirees appear to be safe from further increases to the FRA.
They can plan accordingly, knowing that after 2026, it is not expected to be pushed back any further.
- Fool.”This Big Social Security Change Will Happen for 2 More Years — Then May Never Happen Again”.
- Yahoo.”This Big Social Security Change Will Happen for 2 More Years — Then May Never Happen Again”.
- AOL.”What All Retirees Need to Know About Social Security in 2024″.