Not all retirement claims are treated the same by the Social Security Administration (SSA). The age at which you decide to start collecting benefits permanently locks in your monthly payment amount — whether it ends up being relatively large or small.
At the very core of that calculation is your full retirement age (FRA). It varies depending on your birth year, and 2026 marks a significant milestone for many American workers. There are different ages at which you can claim your benefits, and it all depends, first, on your current situation and some other considerations to have.
The Diferent Retirement Ages in America
If you were born in 1960 or later, your FRA age is 67. This change officially takes effect in November 2026, completing a process Congress began in 1983. Back then, lawmakers amended the Social Security Act to gradually raise the FRA age from 65 to 67.
The reason was, actually, funded by statistical data: people were living longer, and the system needed to maintain the solvency of the trust fund. 43 years later, that transition is now complete.
Workers born in 1959 reached their FRA (66 years and 10 months) in November 2025. Those born in 1958 hit theirs (66 and a half) in November 2024.
So What Does FRA Actually Mean?
It’s the age at which you receive 100% of your primary insurance amount (PIA) — the monthly benefit the SSA calculates based on your 35 highest-earning years. No reductions, no delayed retirement credits. You simply get exactly what your earnings history entitles you to.
And some particular things happen if you claim before FRA age: You can start as early as age 62, but your monthly benefit will be permanently reduced. Here’s how the reduction works:
- For the first 36 months before FRA, your benefit is reduced by 5/9 of 1% per month.
- For any additional months beyond 36, the reduction is 5/12 of 1% per month.
Claiming at 62 instead of 67 results in a 30% permanent reduction. For example, if your full retirement benefit would have been $1,400 per month, you would receive only about $980. That lower amount stays with you for life.
How the COLA Increases Come Into Play
This reduction also affects future cost-of-living adjustments (COLA). Since the COLA are applied as a percentage, a smaller starting benefit means smaller dollar increases each year.
If you’re collecting benefits early and still working, watch out for the retirement earnings test. In 2026:
- If you are under FRA for the entire year, you can earn up to $24,480 without losing benefits. Above that limit, Social Security withholds $1 for every $2 earned.
- In the year you reach FRA, the higher limit of $65,160 applies (for months before you hit FRA). Social Security withholds $1 for every $3 earned above that amount.
The earnings test disappears completely in the month you reach full retirement age, no matter how much you earn.
Important note, since you got up to this point: Any money withheld under the earnings test is not lost. Once you reach full retirement age, the SSA permanently increases your monthly benefit to account for the withheld amounts. This adjustment is applied gradually over time.
