Social Security has been a hot topic because it’s running out of money, and lawmakers are debating how to fix it. One suggestion is to raise the full retirement age (FRA) to 69 years old. This change aims to stretch the program’s lifespan past 2034, but experts say it may hurt workers more than help.
What Is the Full Retirement Age?
- The FRA is the age when you can claim your full Social Security benefits.
- For people born in 1960 or later, the current FRA is 67.
The Proposal to Raise the FRA to 69
Lawmakers propose increasing the FRA to 69 gradually:
- Starting with workers born in 1965, the FRA would increase by three months each year.
- It would reach 69 for people born in 1972.
Other changes include:
- Early retirement age (still 62) remains the same.
- The age to get the maximum Social Security benefit would rise to 72.
Impact on Benefits
If the FRA rises to 69, workers would face reduced benefits:
- Claiming benefits early (at age 62) would cut payments by 40% instead of the current 30%.
- Workers born in the 1970s could lose 13% of their benefits compared to today’s retirees.
Would Raising the FRA Save Social Security?
- Raising the FRA could reduce costs but not enough to prevent Social Security from running out of money by 2034.
- Changes would affect future retirees, not current beneficiaries.
Expert Opinions
- Henry Aaron (Brookings Institution): Raising the FRA helps a little but won’t solve the problem.
- Richard Johnson (Urban Institute): Gradual changes are necessary to avoid unfairness, but they won’t save the system.
Why This Matters
If Social Security’s trust funds run out, future retirees could see big cuts in benefits. Raising the FRA is one idea to extend its lifespan, but experts warn it may not be enough.
1. What is the current full retirement age (FRA)?
For people born in 1960 or later, the FRA is 67 years old.
2. What happens if the FRA increases to 69?
Workers would receive reduced lifetime benefits, with early claimants losing 40% of their benefits.
3. Will raising the FRA save Social Security?
Not entirely. Experts say the trust funds will still run out by 2034, even with this change.
4. Who will be affected by the change?
People born in 1965 or later, particularly those born in the 1970s and 1980s, will see reduced benefits.
5. What is the earliest age to claim Social Security benefits?
You can still claim benefits at 62, but you’ll get less money each month.
