If you were born in 1960, 2026 feels like the finish line. You’ll turn 66 and most friends will say “congratulations, you’re retirement age!” They’re wrong. Your Full Retirement Age (FRA) is 67, so 2026 is actually the last year you’ll face early-claiming penalties. This one detail is tripping up thousands of 1960 babies right now. Here’s the plain-English truth you need before you make a decision you can’t undo.
1. 66 Is NOT Your Full Retirement Age
- Born 1959 → FRA = 66 years + 10 months
- Born 1960 → FRA = exactly 67 (2027)
Turning 66 in 2026 leaves you 12 months short of 100% benefits.
2. The 2026 Penalty for Claiming at 66
| Claim Age | % of Full Benefit | Monthly Loss (if full benefit = $2,500) |
|---|---|---|
| 66 (2026) | 93.3% | -$167 every single month for life |
| 67 (2027) | 100% | $0 |
| 70 (2030) | 124% | +$600 extra every month |
That 6.7% cut at 66 adds up to $50,000–$100,000 lost over a normal retirement.
3. January 2026 Brings a 2.8% COLA – Bigger Rewards If You Wait
All checks rise 2.8% starting January 2026. Average payment jumps from ~$1,927 to ~$1,981; maximum FRA benefit hits $4,152. Claim at 66 and the COLA is forever applied to your reduced amount. Wait until 67 or 70 and every future raise grows a bigger base.
4. 2026 Earnings Limits Are the Highest Ever
Still working? You can earn more without losing benefits:
| 2026 Situation | Earnings Limit | Penalty Rate |
|---|---|---|
| Under FRA all year | $24,480 | $1 withheld per $2 over |
| Year you turn 67 (2027) | $65,160 | $1 withheld per $3 over |
| After 67 | Unlimited | $0 |
Any money withheld comes back as higher checks later.
5. The Two-Year Gap Nobody Talks About
Medicare started at 65 (2025 for you).
Full Social Security starts at 67 (2027).
2026 is the expensive “sandwich year” where many burn savings or claim early just to pay bills.
6. Forced Early Retirement Is the Real Danger
Research shows the jump to FRA 67 increased unemployment for 62–66-year-olds by nearly 2%. If you lose your job in 2026, age discrimination makes re-hiring tough. Many end up claiming reduced benefits out of necessity.
7. FRA 68 or 69 Could Be Next
The trust fund runs dry by 2035 without changes. Raising the retirement age again is the easiest fix politicians love. Plan like 67 is the minimum, not the maximum.
Your 1960-Born Timeline
| Year | Age | What Happens | Smart Move |
|---|---|---|---|
| 2026 | 66 | Still under FRA | Work or bridge with savings |
| 2027 | 67 | 100% benefits unlocked | Claim here or keep delaying |
| 2030 | 70 | Highest possible check | Best choice for healthy people |
Bottom Line
Turning 66 in 2026 feels like retirement, but the government says you’re not there yet. Claiming then costs 6.7% forever. Claiming earlier costs far more. The winners are those who reach 67 (or 70) with income or savings intact. The losers are those forced to file early because they ran out of runway.
Log into ssa.gov today, see your exact numbers, and build your 2026–2027 bridge plan now. Because for the class of 1960, “retirement age” just became one year longer than you ever expected — and that one year could change everything.