Retirement Social Security

The 1 Social Security Change Almost Everyone Missed This Year

See how this silent shift impacts your Social Security benefits.

By Lee Huffman

Edited by Kristy DeSmit

Updated Feb. 13, 2026

Add Us On Google

Most people assume that when Social Security changes, the news is everywhere. Cost-of-living adjustments get headlines. Trust fund debates dominate cable news. New claiming rules tend to spark plenty of chatter.

But there is one Social Security change that almost everyone missed in 2026, and it is especially important to set yourself up for retirement. This year is the final step before full retirement age becomes 67 for all future retirees. Learn how full retirement age has changed, why this change goes unnoticed, and how the change affects your Social Security benefits.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Full retirement age has now reached 67

The overlooked change is this: full retirement age is now 67 for anyone born in 1960 or later.

Full retirement age is the point at which you can claim Social Security retirement benefits without a reduction for early filing. For decades, many retirees considered 65 as "full retirement age." However, that is no longer the case for today's younger retirees.

If you turn 66 in 2026 or later, your full retirement age is 67. Someone born in 1960 will not reach full retirement age until they turn 67 in 2027.

This change was baked into law long ago, and the full retirement age has been slowly extended each year for retirees born in 1955 and beyond. And now this is the first year it fully applies to the newest wave of retirees.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Why this change flew under the radar

Congress set the increase in full retirement age in motion back in 1983. Each year, the full retirement age rose in two-month increments so that the changes unfolded gradually over many years. This avoided sudden changes that often catch retirees off guard or punish someone born "a year too late."

Because there was no single "effective date" announcement and no immediate disruption for current beneficiaries, reaching the end-game of full retirement at age 67 quietly passed without drawing attention. However, the financial impact is significant to many workers who have to work longer to earn their full benefit or be subject to higher penalties if they start taking Social Security benefits early.

How the change actually affects your benefits

The most important impact shows up if you claim Social Security early.

When full retirement age was 66, claiming Social Security at 62 meant a reduction of about 25% from your full benefit. Now that the full retirement age is 67, that reduction has grown to 30%.

Reduction in Social Security benefits due to claiming early is permanent. If you start taking benefits before full retirement age, you'll receive a lower amount for the rest of your life. While you'll still receive annual cost-of-living adjustments, the gap between what you could have received versus what you actually get grows larger every year.

Here's a plain-language example:

The average Social Security benefit at 67 in 2026 is a bit more than $2,000 per month.
Claiming benefits at 62 results in a 30% reduction. That drops your check to about $1,400 per month.
You're losing $600 in benefits per month for the rest of your retirement.

For retirees born between 1943 and 1954, their full retirement age was 66. If they started collecting Social Security at age 62, their reduction was 25%. On that $2,000 monthly benefit, they'd lose $500. A difference of $100 per month may not seem like much, but $1,200 a year over a 20-year retirement adds up to a meaningful amount.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Who is most likely to be affected

This change matters most if you fall into one of these groups:

You were born in 1960 or later and plan to claim before full retirement age
You assume full retirement age is still 66
You base retirement income plans on outdated benefit estimates
You expect Social Security to cover a large share of monthly expenses

Even current retirees can feel ripple effects. Spouses and survivors may base decisions on misunderstood claiming ages, which can affect household income planning.

Why this matters to your retirement plan

Decisions about when to claim Social Security benefits are permanent. Once benefits begin, most claiming choices cannot be undone. If you're not aware of the changing full retirement age, claiming benefits too soon could lead to cuts in your monthly retirement checks.

Many retirees only discover the full retirement age shift after seeing their award letter. By that time, it's too late to change course or save additional money in retirement accounts to offset the loss in income.

Understanding how full retirement age works helps set realistic expectations and avoid surprises. While you may not change the age you plan on retiring, you can take steps to ensure you have enough money in retirement. These steps include increasing your savings rate, building alternative sources of income, taking on more risk, or paying off debt to increase your cash flow.

Bottom line

Full retirement age reaching 67 is not a new law. Instead, it has been a slow phased-in approach over many years. Because it arrived slowly, many people never noticed the change or how it impacts their retirement plan.

This quiet shift means that workers have had to work longer to earn the same level of benefits as people born before them. If you claim early retirement benefits, you'll now lose up to 30% of the benefit you earned through your career. Staying informed about even subtle Social Security updates like this can help you mitigate changes that can have lasting effects on your ability to retire comfortably.

More from FinanceBuzz: