Your retirement age may have changed this year: What to know

(NEXSTAR) – Retirement can be an exciting time, one you've looked forward to throughout your working career. Unfortunately, if you're of a certain age, you've been watching that benchmark slide later and later for the last few years, at least in regard to your Social Security benefits. You can retire whenever you're ready, but retiring too soon may disrupt your retirement benefits from the Social Security Administration. Those benefits cannot be claimed until you turn 62. But even if you start collecting your benefits then, your payouts could be reduced by at least 30%. To avoid this, it's recommended that you wait for your full retirement age, or FRA. Waiting until then prevents your monthly benefits from being permanently reduced. Waiting until you turn 70 can even lead to your payments increasing. Your FRA depends on when you were born. Over the last few years, the FRA has been gradually rising as part of a 1983 amendment to Social Security. If you were born between 1943 and 1954, you've already reached your FRA of 66. That remains unchanged. Starting in 2021, the FRA has been growing by two months a year. Here's the breakdown of those changes: We reached the penultimate increase in FRA this year, though you may not actually hit it until next year. The SSA offers a calculator to determine when you will reach your FRA. The agency also provides data on how much your retirement benefits would be reduced if you decided to start collecting payments at age 62. If you were born in 1960 or later, the SSA estimates a $1,000 retirement benefit could be cut to $700 if you claim at age 62 – the highest benefit reduction of any age group. If you are collecting Social Security benefits, a fast-approaching date will impact your 2027 payments. The SSA is expected to announce its Cost of Living Adjustment (COLA) for 2027 payments. The most recent estimate from The Senior Citizens League for the impending COLA suggested beneficiaries could see a 3.6 percent increase over 2026.