Social Security is raising the full retirement age and adjusting how much you can earn before benefits are reduced

Starting in 2026, Social Security's full retirement age moves up to 67 for people born in 1960. This is part of a gradual increase that began in 2003 and continues through 2027. If you were born in 1960 or later, you will not reach full retirement age at 65 — the age that applied to people born before 1938.

The program is also raising the earnings limit for people who claim before full retirement age. In 2026, if you are under full retirement age for the entire year, Social Security will reduce your benefit by $1 for every $2 you earn above the limit. The exact dollar amount changes each year based on wage growth, so check the Social Security Administration website closer to 2026 for the specific figure.

These changes affect when you can claim without a reduction, how much you lose if you claim early, and how much you can work while receiving benefits. Understanding the timing matters because the decision to claim early, at full retirement age, or later is permanent and affects your payment for life.

Key Takeaways

  • Full retirement age reaches 67 for people born in 1960, meaning you cannot receive your full benefit amount at 65 anymore.
  • The earnings limit — how much you can work before your benefit is reduced — increases each year and will be higher in 2026 than it is now.
  • If you claim before full retirement age and earn above the limit, Social Security reduces your payment by $1 for every $2 over the threshold.
  • Delaying your claim past full retirement age increases your monthly payment by roughly 8 percent per year until age 70.
  • Cost-of-living adjustments (COLA) happen annually in October and affect the maximum benefit amount and earnings limits for the following year.

How the full retirement age increase affects your claim date

The full retirement age is the age at which Social Security pays you 100 percent of your calculated benefit with no reduction. For decades, this age was 65. Starting in 2003, it began rising by two months per year for people born in certain years, and by three months per year for others. By 2026, anyone born in 1960 will have a full retirement age of 67.

This does not mean you cannot claim at 65 — you can still claim as early as 62. But if you claim before your full retirement age, your monthly payment will be permanently reduced. The reduction is steeper the earlier you claim. If you claim at 62 when your full retirement age is 67, your reduction is larger than it would have been if your full retirement age were 66.

If you delay claiming past your full retirement age, your benefit grows. For each year you wait past full retirement age, your monthly payment increases by roughly 8 percent per year until you reach 70. After 70, there is no additional increase, so most people do not benefit from waiting past that age.

Earnings limits and how they work if you claim early

If you claim Social Security before you reach full retirement age, the program limits how much you can earn from work without a reduction to your benefit. In 2026, this earnings limit will increase — the exact amount depends on the cost-of-living adjustment announced in October 2025.

The reduction works this way: if you earn above the limit, Social Security subtracts $1 from your benefit for every $2 you earn over the threshold. This applies only to earnings from work, not to income from investments, pensions, or other sources. Once you reach full retirement age, the earnings limit no longer applies, and you can earn any amount without a reduction.

For example, if the 2026 earnings limit is $23,400 (this is a placeholder — the real figure will be announced later) and you earn $25,400, you are $2,000 over the limit. Social Security would reduce your benefit by $1,000 that year. This reduction is temporary — it affects only the year you earn the extra money, and your benefit returns to the full amount once you stop working or reach full retirement age.

Cost-of-living adjustments and how they change your benefit amount

Every October, Social Security announces a cost-of-living adjustment (COLA) that takes effect the following January. This adjustment raises the maximum benefit amount and the earnings limits to account for inflation. The COLA percentage varies year to year — it was 3.2 percent in 2025, but it will be different in 2026 depending on inflation that year.

The COLA affects three things: your monthly benefit payment (if you are already receiving benefits), the maximum benefit amount for new claimants, and the earnings limit for people who claim before full retirement age. If you have not yet claimed, the COLA in effect when you claim determines your starting payment amount.

The Social Security Administration announces the 2026 COLA in October 2025. At that time, you will also learn the exact earnings limit for 2026 and the maximum benefit amount. If you are planning to claim in 2026, waiting for this announcement can help you understand how much your benefit will be.

Changes to the maximum family benefit and survivor benefits

Social Security also sets a maximum family benefit — the total amount the program will pay to all family members on one person's record. This maximum is usually 150 to 180 percent of the worker's full retirement age benefit amount. In 2026, this maximum will increase along with the COLA.

If you are receiving benefits as a spouse, child, or survivor of a worker, the maximum family benefit affects how much you receive. If the total benefits owed to all family members exceed the maximum, each person's payment is reduced proportionally. The higher the COLA, the higher the maximum family benefit becomes, which can mean larger payments for family members.

Survivor benefits — payments to your spouse, children, or parents if you die — also adjust with the COLA. The benefit amount your survivors would receive is calculated based on your earnings record, and the 2026 COLA will affect how much they would get.

Who is affected by these changes and when they take effect

The full retirement age increase affects anyone born in 1960 or later who has not yet claimed. If you were born before 1960, your full retirement age is already set at 66 or lower, and it will not change. If you were born in 1960, your full retirement age becomes 67 on January 1, 2026.

The earnings limit changes affect anyone who claims before full retirement age in 2026 or later. If you already claimed and are receiving benefits, the earnings limit still applies to you until you reach full retirement age — even if you claimed years ago.

The COLA takes effect in January 2026 for all people receiving Social Security benefits, regardless of when they claimed or how old they are. If you are not yet receiving benefits, the COLA in effect when you claim determines your starting payment.

How to plan your claim date around these changes

If you are approaching 62 (the earliest age you can claim), the changes in 2026 matter to your decision. Claiming in 2025 versus 2026 can result in different payment amounts because the earnings limit and COLA will be different. If you plan to work while receiving benefits, knowing the 2026 earnings limit helps you decide whether to claim before or after that year.

If you are already receiving benefits, these changes do not require you to do anything. Your payment will automatically increase with the 2026 COLA in January. If you are working and receiving benefits before full retirement age, the 2026 earnings limit will apply to your income.

The Social Security Administration publishes detailed information about these changes on its website, including the exact earnings limit and COLA percentage once they are announced in October 2025. You can also call Social Security at 1-800-772-1213 to ask about how these changes affect your specific situation.

Frequently Asked Questions

If I was born in 1960, can I still claim at 65?

Yes, you can claim at 65, but your monthly payment will be permanently reduced because 65 is no longer your full retirement age. Your full retirement age is 67, so claiming at 65 means you are claiming two years early. The reduction is roughly 13.3 percent less than your full retirement age benefit amount.

Does the earnings limit apply to me if I already claimed Social Security?

Yes, if you claimed before your full retirement age, the earnings limit applies to you until you reach full retirement age — even if you claimed years ago. Once you reach full retirement age, the limit no longer applies, and you can earn any amount without a reduction.

When will I know the exact earnings limit and COLA for 2026?

Social Security announces both the COLA percentage and the earnings limit in October 2025. These figures take effect on January 1, 2026. You can find this information on the Social Security Administration website or by calling 1-800-772-1213 in late October 2025.

If I delay claiming past 67, does my benefit keep growing?

Yes, your benefit grows by roughly 8 percent per year if you delay past your full retirement age, up until age 70. After 70, there is no additional increase, so most people do not benefit from waiting past that age to claim.

How does the COLA affect my current Social Security payment?

If you are already receiving benefits, the COLA increases your monthly payment automatically in January. The 2026 COLA will be announced in October 2025 and will apply to all beneficiaries starting in January 2026, regardless of your age or when you claimed.