Social Security has just weighed in on one of the most troubling issues across the United States. The sustainability of our pension system is worrisome, and Donald Trump’s election promises have given quite a bit to talk about. In this regard, many are now wondering what will happen to retirement age, until now when all the doubts have unfolded.
Social Security is thinking on new changes: these are the last adopted ones
In March 2024, the Social Security Administration announced a proposal to gradually raise the full retirement age from 67 to 69 over the next two decades. The change would start in 2027, increasing the full retirement age by 2 months per year until it reaches 69 in 2043.
Under the proposal, the new retirement ages would be:
- 67 and 2 months for those born in 1960.
- 67 and 4 months for those born in 1961.
- 67 and 6 months for those born in 1962.
- 67 and 8 months for those born in 1963.
- 67 and 10 months for those born in 1964.
The full retirement age would continue gradually increasing by 2 months per year for each birth year after 1964 until reaching 69 for those born in 1975 or later. Proponents of the change argue it is necessary to strengthen Social Security’s finances and reflect longer life expectancies.
As people live longer, the ratio of workers paying into the system versus beneficiaries has declined. Raising the retirement age would reduce costs and shore up the program’s solvency. Supporters say Americans should work longer as lifespans increase, rather than receive benefits for a growing portion of their lives.
The impact on seniors is bigger than we think: be prepared to this
Raising the retirement age for Social Security would significantly impact millions of seniors who rely on these benefits in retirement. According to estimates, over 90 % Americans currently depend on Social Security as their primary source of income once they stop working.
An increase in the retirement age would force many to continue working well into their 60s or 70s just to make ends meet. This change could wreak havoc on retirement planning for those nearing retirement age. Individuals plan their retirement finances and budget based on being able to claim Social Security benefits at age 67.
Seniors already struggling to get by or living paycheck to paycheck could face serious financial hardship if forced to wait 1-2 more years for Social Security income. The costs of basic necessities, healthcare and prescriptions continue to rise over time.
Without Social Security coming in, the most vulnerable populations may exhaust savings, go into debt, or have trouble affording essential costs of living. While an extra year or two of work income helps, it may not fully offset the loss for those relying heavily on Social Security in retirement.
Life expectancy, the phenomenon that is causing this increasing problem
Life expectancy in the United States has been steadily rising for decades. According to data from the Centers for Disease Control and Prevention (CDC), in 1950 the average life expectancy in the US was only 68.2 years. By 1980 it had risen to 73.7 years, and in 2019 it reached an all-time high of 78.8 years.
This increase in longevity has major implications for the debate around raising the Social Security retirement age. Proponents argue that since people are living longer, they should also be working longer before being eligible for full Social Security benefits.
Of course, knowing the news about the retirement age of Social Security is more reassuring, and in this way we fight against the misinformation that many have tried to spread these days. The public agency has already pronounced itself on what could happen if it is delayed, now everything is in the hands of the federal government, which does not seem to have any plans to do so.
