he Social Security deficit has been a contentious problem for a few years, and legislators have put out numerous fixes to address it, but none of them have been overwhelmingly approved and enacted.
Raising the full retirement age by two years to age 69 has been one of the most prominent alternatives put out in an effort to prolong the program’s existence into 2034, although experts are divided on whether or not the proposal would actually be beneficial.
An rise in the full retirement age (FRA), which is the age at which seniors can begin receiving Social Security retirement benefits without incurring a financial penalty for retiring early, is one item that has been consistently included in RSC budget plans for years. Under present law, the FRA is 67; however, the RSC plan would return it to 69, which would result in significant reductions in benefits for the vast majority of Americans. The Heritage Foundation, which is leading the authoritarian playbook known as Project 2025, is one of the most radical far-right organizations in Washington, D.C., that have supported raising the FRA despite the fact that it is massively unpopular with Americans.
What is the full retirement age?
The age at which new retirees can begin receiving full Social Security payments is known as the full retirement age (FRA). Now it’s 67. As early as age 62, which is known as the early eligibility age (EEA), employees may choose to begin receiving benefits. However, a retiree’s monthly payments are permanently reduced if they claim Social Security before attaining the FRA. This adjustment is meant to make the lifetime benefits of early claimers approximately comparable to those of later claimers. Benefits are lowered by 30%, for instance, if they are claimed at age 62. Benefits might also be postponed until a person becomes 70. Benefits for late claimants are permanently increased.
How a higher FRA would affect new retirees’ benefits?
Benefits from Social Security would be reduced by this increased FRA. By the time it is fully phased in, a FRA of 69 would reduce payments for all new retirees by around 12.5% to 14.3%, according to estimates from the Center for American Progress. Furthermore, it would cost thousands of dollars annually for a median-wage retiree who made $70,000 in 2022 and reaches 62 in 2034.
