When Did the Retirement Age Change to 67?
If you’ve been wondering “when did the retirement age change to 67?”, the short answer is this: the change began with the 1983 Social Security Amendments, which gradually increased the full retirement age from 65 to 67, depending on your birth year. If you were born in 1960 or later, your full retirement age is officially 67. This shift has huge implications for Social Security, retirement planning, and how long we work before hanging up our boots. In this article, we’ll walk through the history, why the change happened, who it impacts, and how you can plan ahead for a secure retirement.
The Original Retirement Age: Age 65
When the Social Security Act was signed into law in 1935, it set the full retirement age (FRA) at 65. Back then, this age made sense—life expectancy at birth was only around 61 years for men and 65 for women. In other words, many people didn’t even live long enough to collect Social Security benefits for very long. Age 65 was seen as a compromise between affordability for the system and a reasonable retirement point for workers.
Over the decades, the system evolved. Early retirement at 62 was introduced in 1956 (for women) and 1961 (for men). This option allowed retirees to start benefits sooner but with a reduced monthly amount. By the 1970s, the program was so popular that nearly half of retirees chose to start benefits at 62 despite the reduction.
The 1983 Social Security Amendments
By the early 1980s, Social Security faced a financial crisis. The trust fund was nearly insolvent, and lawmakers knew changes were needed to keep the program sustainable. In 1983, a bipartisan commission led by Alan Greenspan recommended sweeping reforms. President Ronald Reagan signed the 1983 Social Security Amendments into law, which included a combination of tax increases, benefit adjustments, and—most importantly—the gradual increase of the full retirement age from 65 to 67.
This was a major shift. The reform acknowledged a new reality: people were living longer and drawing benefits for more years, placing more strain on the system. By gradually raising the FRA, lawmakers could reduce costs without cutting benefits for those already retired.
Phase-In of the Retirement Age Increase
The increase from 65 to 67 didn’t happen overnight. It was phased in gradually based on birth year. Here’s how it works:
| Birth Year | Full Retirement Age (FRA) |
|---|---|
| 1937 or earlier | 65 |
| 1938–1942 | 65 + 2 months per year |
| 1943–1954 | 66 |
| 1955–1959 | 66 + 2 months per year |
| 1960 or later | 67 |
For example, someone born in 1956 has a FRA of 66 years and 4 months, while someone born in 1960 or later has a FRA of 67. This system spreads the adjustment across generations and gives people time to plan ahead.
Why Did the Retirement Age Change to 67?
There are several reasons lawmakers decided to raise the retirement age:
- Longer Life Expectancy: In 1940, the average 65-year-old lived about 14 more years. Today, that number is closer to 20 years. This means people are collecting benefits for much longer.
- Financial Sustainability: The Social Security trust fund was projected to run dry without reforms. Raising the FRA reduces the total lifetime benefits paid out, saving billions over time.
- Demographics: As baby boomers retire, there are fewer workers per retiree. In 1960, there were 5 workers for every retiree. Today, it’s closer to 2.7, and by 2035 it’s expected to drop to 2.3.
- Bipartisan Compromise: Instead of drastic cuts or large tax hikes, raising the FRA was seen as a balanced solution.
Who Is Affected by the Change?
The retirement age increase affects anyone born after 1937, but the biggest impact is on those born in 1960 or later, whose full retirement age is 67. This means younger generations—Millennials and Gen Z—must plan around a later retirement age, unless they choose early retirement with reduced benefits.
If you were born between 1943 and 1954, your FRA is still 66. Those born in the late 1950s land somewhere in between. But if you’re under 65 today, chances are good that your FRA is 67.
How Does This Affect Retirement Planning?
For many retirees, the increase to 67 changes the math. If you claim benefits early at 62, the penalty is larger now because the FRA is higher. For example:
- At FRA 65 → early retirement at 62 reduced benefits by about 20%.
- At FRA 67 → early retirement at 62 reduces benefits by about 30%.
On the flip side, delaying benefits until age 70 increases your monthly check by 8% for each year past FRA. Someone with a FRA of 67 who waits until 70 can receive up to 124% of their full benefit amount.
That’s why tools like the Retirementize online income calculator are so valuable. You can model different claiming ages and see how they affect your long-term income. Pair this with strategies like managing RRSP withdrawals, avoiding retirement mistakes, and understanding safe withdrawal rates, and you’ll be far better prepared.
Is the Retirement Age Going Up Again?
There’s ongoing debate in Washington about whether the FRA should rise again to 68, 69, or even 70. Advocates argue that life expectancy and health improvements make working longer realistic. Critics point out that not all workers can extend their careers—especially those in physically demanding jobs. For now, the FRA remains 67 for those born in 1960 or later, but younger workers should keep an eye on future reforms.
Fun Facts
- When Social Security began in 1935, fewer than 6% of Americans were over age 65. Today, that number is closer to 17%.
- By 2034, the Social Security trust fund is projected to be depleted if no changes are made. At that point, benefits may be reduced to about 77% of promised levels.
- The average monthly Social Security retirement benefit in 2024 is about $1,907.
- More than 40% of retirees rely on Social Security for at least half their income.
- Delaying retirement until 70 can increase your monthly benefit by up to 76% compared to claiming at 62.
Conclusion
So, when did the retirement age change to 67? The answer lies in the 1983 Social Security Amendments, which gradually phased in a higher retirement age to reflect longer life expectancies and protect the program’s financial future. While it may feel like a challenge to wait longer for full benefits, understanding how the system works gives you more control. By combining smart planning, additional income sources, and tools like the Retirementize calculator, you can make the most of your retirement years and enjoy a secure, happy future.