(NEXSTAR) — The retirement age in the U.S. is about to hit a new high next year as the final stage of a 1983 rule takes effect.

More specifically, it is the full retirement age that is changing in 2026. Technically, you can start claiming retirement benefits from the Social Security Administration once you turn 62, but it won’t be the full amount. The SSA says payouts could be reduced by 30% (or 35%, if you’re receiving a spouse’s benefit).

Once you reach full retirement age, or FRA, your monthly benefits will not face a permanent reduction. If you wait longer to apply, up to age 70, you can receive a higher payment.

What your FRA is depends on when you were born. For those born between 1943 and 1954, who are now in their 70s and 80s, that age is 66. But, since 2021, the retirement age has been slowly moving back two months for every age group in adherence with a 1983 amendment for Social Security. For those born in 1955, the retirement age is 66 years and two months, for example.

Next year, the final shift will happen, making the retirement age for those born in 1960 and later 67. That means if you were born in 1960, you won’t reach FRA until 2027. The SSA offers a calculator to determine when you will reach your FRA.

This age group also faces the highest benefit reduction if they claim Social Security early. According to the SSA, a $1,000 benefit would be cut to $700.

Next year will also come complete with a Social Security COLA increase, adjustments that will allow you to save more for retirement in 401(k) and IRA accounts, and a slew of other tax changes that may even make your paycheck larger.

The maximum Social Security benefit will also increase in 2026. For those who retire at their FRA, the most they could receive monthly will jump to $4,152, up from $4,018 this year.