Group 1 - Social Security recipients will see an increase in their benefits due to a projected 2.7% cost-of-living adjustment (COLA) in 2026, which is higher than the 2.5% increase in 2025 [4][5] - The full retirement age (FRA) is changing, with individuals born in 1960 or later having an FRA of 67, meaning they will need to wait longer to claim full benefits compared to those born earlier [6][7] - Delaying the claim beyond FRA can result in delayed retirement credits, increasing benefits by 2/3 of 1% per month, or 8% annually, up to age 70, providing a potential financial advantage for retirees [8]

Key Points Working while collecting Social Security can temporarily reduce benefits if you are under full retirement age. Working can also increase Social Security benefits for a surprising reason. If you can work and boost your average wages, you can end up with a bigger benefit. The $23,760 Social Security bonus most retirees completely overlook › If you are collecting Social Security benefits and thinking about continuing to work, you need to be aware that the rules for holding a job while col ...

Core Insights - Social Security is a crucial social program in America, with many components that can complicate understanding [1] - Understanding the full retirement age (FRA) is essential for retirees as it significantly impacts their benefits [2] Benefit Calculation - Monthly benefits are determined by the timing of claims relative to the FRA, with the primary insurance amount (PIA) being the base benefit received at FRA [4] - Claiming benefits before the FRA results in a permanent reduction, with a decrease of 5/9 of 1% for the first 36 months and 5/12 of 1% for each additional month [5] - For example, claiming at age 64 (FRA 67) results in a 20% reduction, lowering a $2,000 PIA to $1,600, while claiming at 62 results in a 30% reduction to $1,400 [5] Delayed Benefits - Delaying benefits past the FRA increases the monthly amount by 2/3 of 1% per month, equating to an 8% annual increase until age 70 [6] - Continuing the previous example, delaying benefits until age 70 would increase the amount to $2,480, a 24% increase from the original PIA [6] Spousal Benefits - Claiming spousal benefits is also affected by the timing of the claim relative to the FRA, with reductions of 25/36 of 1% for up to 36 months and 5/12 of 1% for additional months [9] - For a person with an FRA of 67, claiming spousal benefits at 64 results in a 25% reduction, while claiming at 62 results in a 35% reduction [10]