US Social Security Full Retirement Age Rising to 67 in 2026

Social Security benefits provide a crucial income source for approximately 72 million Americans, but claiming early at age 62 can reduce monthly payments by up to 30%, resulting in an average benefit of about $1,341 for early claimants versus around $2,002 for all retirees as of 2025. The Full Retirement Age (FRA) is gradually increasing due to the 1983 amendments, reaching 67 for those born in 1960 and later, which means claiming benefits before FRA permanently reduces monthly payments. To maximize benefits, delaying Social Security until full retirement age or later, potentially supported by income from annuities, can increase monthly payments substantially. Veterans injured during active duty since October 1, 2001, or those with a 100% permanent and total VA disability rating, may qualify for expedited Social Security Disability Insurance or Supplemental Security Income benefits. Despite the importance of Social Security, its average benefit falls short of covering typical retirement expenses, emphasizing the need for additional savings and strategies such as increasing lifetime earnings to boost future benefits. Understanding these factors can help retirees better plan their income sources for a more secure retirement.