Deciding when to retire is a very important decision to make. In the U.S., this decision is related to Social Security, which is the money the government pays each month to people when they stop working because of age.
Many people know they can claim Social Security at 62, but they don’t always understand how it works and when is the best time to do it. We can tell you that the year 2026 could be an important moment to retire for many people. So, let’s find out more about this.
How Social Security works
Before getting into the issue, we need to understand the basics:
- You can start collecting Social Security as early as age 62.
- If you start early, your monthly payment is lower.
- If you wait longer, your monthly payment is higher.
- The amount you receive is fixed and lasts for the rest of your life.
The age at which you receive your full Social Security benefit is called full retirement age. For people born in 1960 or later, this age is 67.
Now, let’s get into the reasons why 2026 could be a great time to retire.
Being 70 in 2026
This is the most direct and easy to understand reason. The government allows people to increment their Social Security payment if they wait until being 67 years old. So, for every year you wait, the payment increases about 8%. However, this increment completely stops when you reach the age of 70, which means that there’s no advantage in waiting to retire after that age.
This is why, if you are 70 in 2026, that year becomes the perfect moment for retirement and claiming Social Security. According to experts, waiting more time can make you even lose money that you could be receiving instead.
Did you turn 70 before 2026 and haven’t claimed your payments yet? You should do it as soon as possible.
Your savings already cover your expenses
Many people delay retirement because they are afraid of receiving a lower Social Security payment. Of course, this is understandable, but you don’t always have to wait. If you have enough savings to cover your basic expenses, retiring before could be a good option. For example:
If someone spends about $5,000 per month and they have $2 million saved in a retirement account such as an IRA or a 401(k), they could withdraw about $80,000 per year from their savings by using a common guideline. This amount is enough to cover their usual expenses, so the Social Security will be additional money (travelling, buying a house, fulfilling personal goals, etc).
Your health
This reason is probably one of the most important and human ones. From the financial point of view, waiting to retire might be a great idea, especially if you don’t have many savings. However, health is very important. So, keeping working might have a very high cost for your health if it causes you constant stress, affects your physical and mental health, or leaves you exhausted or unwell.
Retiring in 2026?
There’s not a unique answer for everybody. The decision depends on several personal factors, like:
- Your age.
- Your level of savings.
- Your monthly expenses.
- Your health.
- Your personal goals.
For some people, 2026 may mark the beginning of a new phase of life with more freedom and stability. For others, waiting longer may still be the better choice.
However, if you recognize yourself in one of the three situations described, 2026 could be the right moment to consider retirement.
So…
As you read this, consider where you fit. Your age, your savings, and your health all play a role in deciding when to retire. For many people, 2026 may represent a chance to step away from work and move into a new stage of life with more freedom and stability.
The key is choosing the timing that best supports your long-term comfort, security, and peace of mind.