Starting in 2026, anyone born in 1960 or later faces a new reality: full retirement age for Social Security is now 67. This marks the final step in a gradual increase that began under a 1983 law designed to strengthen the program’s finances. For the youngest baby boomers and all of Generation X, the age at which you can claim your complete earned benefit has moved two full years beyond what retirees experienced a generation ago.
This change matters because Social Security often represents the foundation of retirement income for millions of Americans. The monthly check provides guaranteed income that lasts as long as you live, making the decision of when to start benefits one of the most consequential financial choices you’ll make. Unlike a 401(k) withdrawal or investment allocation you can change, your Social Security claiming age is largely permanent.
The One Decision That Changes Everything
The most important factor in your Social Security outcome is when you start taking benefits. You can claim as early as 62, but doing so permanently reduces your monthly payment by about 30% compared to waiting until 67.
Claiming early comes with a steep cost. If you start at 62 instead of waiting until 67, your monthly benefit drops by roughly 30% for the rest of your life. This isn’t a temporary reduction, it’s permanent and affects every check you receive.
To understand the real impact, consider someone entitled to $2,000 monthly at full retirement age. Claiming early means accepting just $1,400 instead.. This lost income becomes especially painful in later years when healthcare costs typically rise and you have fewer options to supplement your income.
The flip side offers a powerful incentive to wait. Each year you delay past 67 adds about 8% to your monthly payment, up until age 70. For someone entitled to $2,000 at full retirement age, this growth strategy could boost their monthly check to nearly $2,500. The enhanced benefit continues for life, making longevity the key variable in whether waiting pays off.
The math favors waiting if you expect to live into your 80s or beyond. It favors claiming early if you have serious health concerns or need the income immediately. For most people in between, the decision hinges on whether other savings can cover expenses until 67 or 70.
How This Fits With Your Other Income
Social Security doesn’t exist in isolation. If you have retirement accounts like a 401(k) or IRA, you might draw from those first while letting Social Security grow. This strategy works well if your tax-deferred accounts are substantial, since required minimum distributions will eventually force withdrawals anyway.
Part-time work can also bridge the gap, though earning too much before full retirement age temporarily reduces Social Security payments. Once you reach 67, you can earn any amount without penalty.
What to Think Through Now
Before deciding when to claim, consider two key questions: How long do you expect to need this income? And what other resources can you tap in the meantime? The claiming age you choose is difficult to reverse, so understanding the long-term impact matters more than reacting to short-term needs.
Everyone’s situation differs. Health status, family longevity, other income sources, and personal circumstances all play a role. The goal isn’t to find a perfect answer, but to make an informed choice based on what matters most in your retirement.