Three major changes arrive in 2026
Starting in 2026, Social Security is implementing three changes that will affect how much you receive, when you can claim, and how your benefits are calculated. The full retirement age — the age at which you receive your complete benefit amount — rises to 67 for people born in 1960 or later. The earnings test, which reduces benefits if you work while claiming early, changes its income threshold. And the formula used to calculate your monthly benefit amount shifts to account for longer life expectancies.
These changes were written into law in 1983 and have been phasing in gradually for decades. They are not new policy decisions, but they do take effect in 2026 in ways that will matter to your specific situation depending on your birth year and work plans.
Key Takeaways
- Full retirement age reaches 67 for anyone born in 1960 or later, meaning you must wait until then to receive your complete benefit without reduction.
- If you claim before full retirement age and continue working, the earnings test threshold increases, allowing you to earn more before Social Security reduces your check.
- The benefit calculation formula changes to reflect longer average lifespans, which may result in slightly lower monthly payments for new claimants.
- People born before 1960 are not affected by these changes and should check their current full retirement age on their Social Security statement.
Full retirement age moves to 67
Your full retirement age is the age Social Security uses to determine your complete benefit amount. If you were born in 1959, your full retirement age is 66 and 10 months. If you were born in 1960 or later, your full retirement age is 67.
This matters because claiming before your full retirement age means a permanent reduction to your monthly check. At age 62 (the earliest you can claim), the reduction is roughly 30 percent. At 65, it is roughly 13 percent. At your full retirement age, you receive 100 percent of your calculated benefit. After your full retirement age, your benefit grows by about 8 percent per year until age 70.
If you were born before 1960, your full retirement age is already set and will not change. You can find your exact full retirement age on your Social Security statement, which you can view online at ssa.gov or request by mail.
Earnings test threshold increases for early claimers
If you claim Social Security before your full retirement age and continue working, Social Security reduces your benefit by $1 for every $2 you earn above a certain threshold. In 2026, that threshold increases, meaning you can earn more before your benefit is reduced.
The exact dollar amount changes each year based on wage growth, so the 2026 threshold will not be announced until late 2025. However, the pattern is clear: the threshold rises annually, allowing early claimers to work more without triggering a reduction. In the year you reach your full retirement age, the reduction stops entirely, even if you continue working.
This change primarily affects people who claim at 62, 63, 64, or 65 and plan to keep working. If you do not work or earn below the threshold, the earnings test does not affect you.
Benefit calculation formula adjusts for longer lifespans
Social Security calculates your monthly benefit using a formula based on your 35 highest-earning years. The formula includes bend points — dollar amounts that determine what percentage of your earnings become your benefit. In 2026, these bend points increase to reflect that people are living longer on average than they did when the current formula was adopted.
The effect is modest but real: new claimants in 2026 will receive slightly lower monthly benefits than someone with identical earnings history who claimed in 2025. The reduction is not dramatic — typically a few dollars per month — but it compounds over time. This change affects only people who have not yet claimed Social Security; current beneficiaries are not affected.
Your actual benefit amount depends on your specific earnings record, so you cannot calculate the exact impact without knowing your full work history. You can view your estimated benefit on your Social Security statement or use the benefit calculator at ssa.gov.
Who is affected and who is not
If you were born in 1959 or earlier, none of these changes affect you directly. Your full retirement age is already set, the earnings test rules you face are already in place, and your benefit calculation is based on the current formula.
If you were born in 1960 or later, all three changes apply to you. The full retirement age change is the most significant: you must wait two years longer than someone born in 1943 to receive your complete benefit without reduction. The earnings test and benefit formula changes are smaller in impact but still worth understanding if you plan to claim early or are calculating your expected income.
If you were born between 1943 and 1959, you fall in the transition period. Your full retirement age is somewhere between 66 and 67, depending on your exact birth year. Check your Social Security statement to find your specific full retirement age.
How to find your full retirement age and estimated benefit
The easiest way to learn your full retirement age is to create an account at ssa.gov and view your Social Security statement. The statement shows your full retirement age, your earnings history, and an estimate of your benefit at different claiming ages. You do not need to call or visit an office.
If you prefer not to create an online account, you can request a statement by mail through the same website, or call Social Security at 1-800-772-1213. The phone line is busiest early in the week and early in the month, so calling mid-week or mid-month may mean shorter wait times.
Your statement also shows whether Social Security has a complete record of your work history. If you see gaps or errors, you can correct them by providing W-2 forms or tax returns. Correcting errors now can increase your benefit significantly, so it is worth checking even if you do not plan to claim for years.
What these changes mean for your claiming strategy
If you are considering claiming at 62, the higher full retirement age means a larger permanent reduction than it would have been for someone born earlier. For example, someone born in 1943 who claims at 62 receives about 70 percent of their full benefit. Someone born in 1960 who claims at 62 receives about 70 percent of their full benefit, but their full benefit is based on a higher full retirement age of 67 instead of 66, so the dollar amount is lower.
If you plan to work past 62, the higher earnings test threshold in 2026 makes it slightly easier to work without triggering a benefit reduction. However, the reduction is temporary: once you reach your full retirement age, your benefit is recalculated to account for the months it was reduced, so you recover most of the money.
The benefit formula change is smallest in impact for most people, but it reinforces a broader pattern: Social Security is adjusting to longer lifespans by raising the age at which you receive your full benefit and slightly lowering the benefit amount for new claimers. This does not mean the program is going away, but it does mean the program is changing how it balances payouts across a longer retirement period.
Frequently Asked Questions
Does the full retirement age change affect people already receiving Social Security?
No. If you are already receiving benefits, your full retirement age and your monthly payment do not change. The new full retirement age of 67 applies only to people born in 1960 or later who have not yet claimed.
If I claim at 62 in 2026, will my benefit be reduced more than it would have been in 2025?
The percentage reduction is the same — roughly 30 percent — but the base amount is lower because your full retirement age is 67 instead of 66. The dollar reduction is larger, but the percentage is consistent across years.
Can I still claim at 62 in 2026?
Yes. 62 remains the earliest age you can claim Social Security. The change is to your full retirement age, not your earliest claiming age. Claiming at 62 will always result in a permanent reduction, but you can still do it.
Will my benefit increase if I wait past my full retirement age?
Yes. Your benefit grows by roughly 8 percent per year from your full retirement age until age 70. If your full retirement age is 67 and you wait until 70, your benefit will be about 24 percent higher than it would be at 67.
How do I know if the earnings test will affect me?
The earnings test applies only if you claim before your full retirement age and earn income from work. If you plan to claim at your full retirement age or later, or if you do not work, the earnings test does not affect you. Social Security will tell you the exact threshold when you claim.