Congress changed the Social Security retirement age in 1983, raising it from 65 to 67 through the Social Security Amendments of 1983 (Public Law 98-21), which President Reagan signed on April 20, 1983.1Social Security Administration. Summary of P.L. 98-21, Social Security Amendments of 1983 The increase did not take effect all at once. It phases in by birth year, and anyone born in 1960 or later now has a full retirement age of 67 — the highest it has ever been under federal law.
Why Congress Raised the Age in 1983
The original Social Security Act of 1935 set the full retirement age at 65, and that number held for nearly five decades. By the early 1980s, Social Security’s trust funds were running dangerously low. In 1981, Congress and President Reagan created the National Commission on Social Security Reform, commonly called the Greenspan Commission after its chairman, Alan Greenspan, to find a fix.2Social Security Administration. Greenspan Commission Report The commission issued its recommendations in January 1983, and those recommendations became the backbone of the amendments passed that April.
The logic behind raising the age was straightforward. People were living longer and collecting benefits for more years, and the trust funds needed relief. Rather than cutting benefits or sharply increasing payroll taxes, Congress spread the increase over several decades so no single group of workers absorbed the full impact.3Social Security Administration. History of SSA-Related Legislation – 98th Congress It was the first time the government moved the retirement age away from the 1935 benchmark.
Full Retirement Age by Birth Year
The 1983 law created a two-step phase-in. The first step moved the full retirement age from 65 to 66 in two-month increments, then paused for people born between 1943 and 1954. The second step moved it from 66 to 67 using the same two-month increments. The complete schedule:4Social Security Administration. Normal Retirement Age
- 1937 or earlier: 65
- 1938: 65 and 2 months
- 1939: 65 and 4 months
- 1940: 65 and 6 months
- 1941: 65 and 8 months
- 1942: 65 and 10 months
- 1943–1954: 66
- 1955: 66 and 2 months
- 1956: 66 and 4 months
- 1957: 66 and 6 months
- 1958: 66 and 8 months
- 1959: 66 and 10 months
- 1960 or later: 67
Full retirement age is the point at which you receive 100 percent of your primary insurance amount, the monthly benefit Social Security calculates based on your lifetime earnings. Claiming before that age reduces your benefit; waiting past it increases your benefit.
What the Change Did to Early Retirement at 62
The 1983 law did not change the earliest age you can file for retirement benefits. That stayed at 62. What it changed is the size of the reduction you face for claiming early, because the gap between 62 and full retirement age grew wider.
The reduction is calculated by the month. For each of the first 36 months you claim before full retirement age, your benefit drops by 5/9 of one percent per month. For any additional months beyond 36, the reduction is 5/12 of one percent per month.5Social Security Administration. Early or Late Retirement The practical result:
- If your full retirement age is 66 (born 1943–1954), claiming at 62 cuts your benefit by 25 percent.
- If your full retirement age is 67 (born 1960 or later), claiming at 62 cuts your benefit by 30 percent.
These reductions are permanent. On a $2,000 full monthly benefit at age 67, claiming at 62 would lock the payment at roughly $1,400 for life, before cost-of-living adjustments.6Social Security Administration. Retirement Age and Benefit Reduction
What the Change Did to Delayed Retirement
Waiting past your full retirement age goes the other direction. Social Security adds delayed retirement credits to your benefit for each month you postpone claiming. For anyone born in 1943 or later, the credit is 8 percent per year, or 2/3 of one percent per month, up to age 70.7Social Security Administration. Delayed Retirement Credits No additional credit accrues after 70, so there is no financial reason to wait longer.
For someone with a full retirement age of 67, waiting until 70 adds 24 percent to the monthly benefit. The maximum possible Social Security benefit for a worker retiring at 70 in 2026 is $5,181 per month.8Social Security Administration. Maximum Social Security Retirement Benefit
Medicare Eligibility Did Not Change
Although the full retirement age for Social Security rose to 67, Medicare eligibility has stayed at 65.9Social Security Administration. If You Want Medicare But Not Monthly Cash Benefits at This Time That creates a two-year gap where you may qualify for Medicare but not yet be at your full Social Security retirement age.
If you are already receiving Social Security payments when you turn 65, you are generally enrolled in Medicare Part A and Part B automatically. If you have delayed claiming Social Security past 65, you need to sign up for Medicare yourself during the seven-month window around your 65th birthday. Missing that window can trigger a Part B late enrollment penalty: your monthly Part B premium increases by 10 percent for every full 12-month period you could have had coverage but did not enroll. If you are still working at 65 and covered by an employer group health plan, a special enrollment period lets you sign up for Part B later without a penalty, during employment or within eight months of leaving the job or losing coverage, whichever comes first.10Centers for Medicare & Medicaid Services. Original Medicare (Part A and B) Eligibility and Enrollment
Will the Retirement Age Change Again?
The 1983 amendments bought decades of solvency, but the system is under pressure again. According to the 2025 Social Security Trustees Report, the Old-Age and Survivors Insurance trust fund is projected to run out of reserves in 2033. If the retirement and disability trust funds are considered together, the combined funds are projected to be depleted in 2034.11Social Security Administration. Trustees Report Summary After depletion, incoming payroll taxes would still cover a portion of scheduled benefits, but not all of them.
Raising the full retirement age again is one of the most frequently discussed responses. The Social Security Administration’s Office of the Chief Actuary has analyzed proposals that would push the full retirement age to 68, 69, or 70 over the coming decades. Some proposals would also raise the earliest claiming age above 62 or extend delayed retirement credits past 70.12Social Security Administration. Retirement Age – Long Range Solvency Provisions As of 2026, no legislation changing the retirement age beyond 67 has been enacted.