2026 Social Security Update: Younger Workers Face 5-Year Delay to Full Benefits
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Starting in 2026, millions of Americans born in 1960 or later will have to wait an additional five years to claim their full Social Security retirement benefits. This change, which affects those born in 1960 or later, is part of the gradual phase-in of the 1939 amendments to the Social Security Act. According to CBS News, this shift means that younger workers may see their lifetime benefits reduced due to longer working years. If they claim benefits as early as age 62, their monthly payout could be permanently reduced by up to 30%. For instance, someone planning to retire at 62 in 2026 may receive significantly less than someone who waits until age 67. The rise to age 67 is aimed at ensuring the long-term sustainability of Social Security, given the growing ageing population and increasing life expectancies. However, working longer can be beneficial for those who can delay claiming benefits until age 70, as their earnings will factor into their benefit calculation for more years. The Social Security Administration (SSA) provides a calculator to determine when individuals will reach their full retirement age. For those born in 1960 or later, it's crucial to consider delaying claiming Social Security until age 67 or beyond to maximize benefits. This age group faces the highest benefit reduction if they claim early, with a $1,000 benefit potentially being cut to $700. It's essential to assess whether one is financially prepared to stay employed longer or adjust their retirement lifestyle.
