Congress changed Social Security’s full retirement age from 65 to 67 in 1983, when President Ronald Reagan signed the Social Security Amendments into law on April 20 of that year.1Social Security Administration. Summary of P.L. 98-21, Social Security Amendments of 1983 The change did not take effect all at once. The law set up a gradual increase tied to birth year, starting with people born in 1938 and finishing with those born in 1960 or later, who face a full retirement age of 67. Anyone born before 1938 kept the original retirement age of 65.
Why Congress Raised the Age in 1983
The full retirement age had been 65 since Social Security began paying benefits in the early 1940s. By the early 1980s, longer life expectancies and financial pressure on the trust funds prompted a bipartisan review. President Reagan appointed the National Commission on Social Security Reform, chaired by Alan Greenspan, to find a fix before the trust funds ran dry.2Social Security Administration. 1983 Greenspan Commission on Social Security Reform
Congress adopted a phased increase in Public Law 98-21, raising the full retirement age from 65 to 67 in two stages to be completed by 2027. The law preserved the option to claim benefits as early as 62, but with a larger reduction than before. By pushing the age for full benefits higher, Congress trimmed the total lifetime payout for future retirees without cutting anyone’s monthly check at full retirement age.
Full Retirement Age by Birth Year
Your exact full retirement age depends on the year you were born.3Social 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
The schedule moves in two-month steps, pauses for the twelve birth years from 1943 through 1954 at a full retirement age of 66, then resumes climbing.4Social Security Administration. Benefits Planner – Retirement Age Calculator If you were born in 1960 or later, you wait two years longer for a full benefit than someone born before 1938 did.
What Claiming Early at 62 Now Costs
You can still start collecting Social Security at 62 regardless of your full retirement age, but your monthly payment will be permanently reduced. The reduction formula works in two tiers: 5/9 of 1% per month for the first 36 months you claim early, then 5/12 of 1% per month for each additional month beyond that.5Social Security Administration. Benefit Reduction for Early Retirement
Because the full retirement age has risen, the penalty for claiming at 62 has grown. When full retirement age was 65, claiming at 62 meant filing 36 months early and taking a 20% cut. With a full retirement age of 67, claiming at 62 means filing 60 months early, a 30% reduction. A $1,000 monthly benefit at full retirement age would shrink to $700 at 62.6Social Security Administration. Benefits Planner – Retirement Age and Benefit Reduction
What Waiting Past Full Retirement Age Adds
Delay works in the other direction. For each year you wait past your full retirement age, up to age 70, your benefit grows by 8%, or two-thirds of 1% per month. This delayed retirement credit applies to anyone born in 1943 or later.7Social Security Administration. Delayed Retirement Credits
For someone with a full retirement age of 67, waiting until 70 adds three years of credits and boosts the monthly benefit by 24%. There is no additional increase after 70.8Social Security Administration. Effect of Early or Delayed Retirement on Retirement Benefits
Medicare Still Starts at 65
The 1983 law did not touch Medicare. Medicare eligibility still begins at 65. If your full retirement age is 67, you face a two-year window where you qualify for Medicare but not for an unreduced Social Security check.9Social Security Administration. If You Want Medicare But Not Monthly Cash Benefits at This Time
You can sign up for Medicare at 65 without claiming Social Security. Delaying Medicare to wait for your full retirement age can be an expensive mistake. If you do not have qualifying employer coverage, failing to enroll in Part B when first eligible triggers a late enrollment penalty of 10% added to your monthly premium for each full year you were eligible but did not sign up, and in most cases that penalty lasts as long as you have Part B.10Medicare.gov. Avoid Late Enrollment Penalties The standard Part B premium in 2026 is $202.90 per month, so a two-year delay could add roughly $40.58 per month permanently.11Centers for Medicare and Medicaid Services. 2026 Medicare Parts A and B Premiums and Deductibles
Could the Age Rise Again
The Social Security trust funds still face long-term funding shortfalls, and raising the full retirement age beyond 67 is one option policymakers are studying. The Social Security Administration’s Office of the Chief Actuary has modeled more than a dozen scenarios that would push the age to 68, 69, or 70, some starting with people who turn 62 in 2026. Others would raise the earliest eligibility age above 62 for the first time, or tie future increases to life expectancy so the age adjusts automatically.12Social Security Administration. Provisions Affecting Retirement Age
None of these proposals have been enacted, and any change would take new legislation from Congress. For now, 67 remains the full retirement age for anyone born in 1960 or later.