Social Security's retirement age increases today. Here's what to know

The age at which you can receive full Social Security benefits will rise to 66 years and 10 months starting Thursday, the second-to-last step before reaching 67 in 2026.

Newsday talked with financial advisers for advice on when you should sign up to start receiving benefits, and an expert on the politics of Social Security explains why there are proposals to raise the retirement age beyond 67 — and why that hasn’t happened.

Why is the retirement age increasing?

The two-month increase is part of a decadeslong rise in the retirement age from 65 that was outlined in a 1983 law. The increases were the first since Social Security was created in 1935.

When is my retirement age?

If you were born in 1960 or later, your full retirement age is 67.

For those born in 1959 after Jan. 1, your full retirement age will be when you turn 66 years and 10 months.

For people born Jan. 1, 1959, and for those born in 1958 after Jan. 1, the retirement age is 66 years and 8 months.

Can I receive benefits earlier?

Yes. The "full retirement age" that is increasing is the age at which you can receive full benefits.

You can get benefits as early as age 62, but you’ll receive about 30% less, and that reduction will stay in place for life. The Social Security Administration has an online calculator to determine what your benefits would be at what age.

If you file for benefits before you stop working, you will pay another penalty if you earn more than $23,400 per year. For every $2 earned over $23,400, Social Security will deduct $1 in benefits. Once you hit your full retirement age, there is no income ceiling, so you can continue working without a penalty.

Is there any difference in the amount of benefits if I wait to collect them after my full retirement age?

Yes. You can receive a bonus, called delayed retirement credits, that increases each month you wait. It works out to 8% per full year for current and future retirees and for many previous retirees.

If you die and are married, your spouse will collect a higher benefit as well, said financial adviser Jeffrey Lewis, founder and president of Planning Financial Futures in Melville. Spouses, children who are minors and some others are eligible for survivors' benefits when a Social Security beneficiary dies.

Is there a limit to how much I can receive if I had high incomes during my work life?

Yes. The maximum monthly Social Security benefit in 2024 for someone retiring at the full retirement age was $3,822. The maximum was $2,710 for those retiring at age 62 and $4,873 for those retiring at age 70.

The average monthly Social Security benefit for a retired worker in November 2024 was $1,925. Nearly 51.7 million people received retired-workers benefits in November.

Do my benefits change each year once I sign up?

Yes. Each year there is an increase in benefits called a cost-of-living adjustment, to offset the effects of inflation. In 2025, there is a 2.5% increase. In 2023, the increase was 8.7%, reflecting the high level of inflation in previous months.

How do I know when is best for me to retire?

If you’re in good health and there’s a history of long life expectancies in your family, it’s best to wait as long as possible, Lewis said.

"If you’re going to live longer, you’re going to need money the whole time you’re here," he said.

Each month you wait past the full retirement age is guaranteed additional money, said Domenick D’Andrea, co-founder of DanDarah Wealth Management in Westbury and a financial adviser.

"Unless you don't have good longevity, or you're desperate for some of the money, I'd try to push it off until 70, because you get a guaranteed 8% increase on your number" every year you delay receiving benefits, he said. "There's nowhere out there that you get a guaranteed 8% on any money that you have."

When you lock in a higher benefit amount, you also lock in a greater increase each year based on the cost-of-living adjustment, D’Andrea said.

For example, someone receiving $1,000 a month in benefits in 2022 would have received $87 more per month throughout 2023 because of the 8.7% adjustment. Someone receiving $2,000 a month in benefits would have received $174 more per month — or $2,088 for the entire year.

Are there any advantages to begin receiving benefits before my full retirement age?

If you don’t expect to live a long life, you may want to collect benefits early, Lewis said. In addition, some people may desperately need the money as soon as possible and choose to forgo the future higher benefit amounts, D’Andrea said.

I’m younger. Will 67 be my retirement age? And will the benefits be the same as for current retirees? 

There have been various proposals to raise the retirement age past 67, including one that a majority of House Republicans supported last year to raise it over time to 69. But President-elect Donald Trump and the 2024 Republican Party platform oppose raising the retirement age, as do most Democrats.

Supporters of raising the retirement age warn that not doing so puts future benefits at risk. The trustees who oversee the Social Security trust fund said in a report released in May that without some type of change in the Social Security system, the trust fund for old-age benefits would run out of money by 2033, and recipients would receive only 79% of their benefits starting then.

Opponents of raising the retirement age argue that an increase in the retirement age means less time to receive benefits, which amounts to a cut. Some favor raising the income at which Social Security taxes can be collected, arguing that wealthier people can afford increases and that high earners tend to live longer than low earners. In 2025, no income past $176,100 is subject to tax.

Why is the system in financial peril?

Increases in life expectancy mean more money spent on benefits for the average person.

In 1940, when the first Social Security benefits checks were sent out, life expectancy was 61.4 years for men and 65.7 years for women.

In 2024, the life expectancy for someone born in 1959 was 74 for men and 80.1 for women, according to a Social Security report. The report predicts continuing increases in life expectancy, which translates into even more years that beneficiaries will receive Social Security checks.

With the system in long-term trouble, can we expect a solution soon?

Don’t count on it, said Richard Himelfarb, a professor of political science at Hofstra University and an expert on the politics of Social Security. Any action that can reduce financial strain on the system — reducing benefits, increasing taxes, raising the retirement age — would anger part of the electorate, he said.

"The politics of Social Security are unpleasant," he said.

The Social Security trustees’ report urges that action be taken soon so changes can be implemented gradually. But Himelfarb predicted Congress will keep delaying action until they have no choice but to act — and that in the end they and the president could "just agree to borrow more money, to just put it on the deficit tab."

By David Olson

david.olson@newsday.com@DavidOlson11

David Olson covers health care. He has worked at Newsday since 2015 and previously covered immigration, multicultural issues and religion at The Press-Enterprise in Southern California.