Retiring at 67 used to feel like a fixed rule—like you knew exactly when freedom would begin. But now that idea is changing.
People in the U.S. are living longer, having fewer kids, and Social Security might run low on money soon.
That means the age when you get full retirement money (called the Full Retirement Age or FRA) could go up—to 68, 69, or even 70, especially if you’re in your 30s now.
This shift could change how we plan our lives—how long we work, save, and dream about our “golden years.” Let’s break it down in a way that’s simple to understand.
How We Got Here
Right now, if you were born in 1960 or later, your FRA is 67—that’s when you can claim 100% of your Social Security benefits.
But a recent report from the Social Security trustees says the fund might be empty by 2034, unless changes are made.
After that, benefits could drop around 20%. To avoid that, one big idea floating around is to raise the retirement age. This could help keep the program alive longer.
Why Raise the Retirement Age?
Policy experts give three major reasons:
- We’re living longer, often into our 80s.
- There are fewer workers paying in, and more retirees drawing out.
- If people start claiming later, benefits last longer, and the system stays funded longer.
What Could Change?
If FRA goes up to 68, 69, or 70, that means:
- If you claim early (like at 62), your check gets cut even more—maybe 35% lower instead of 30%.
- You may need to work more years or save more before you retire.
Here’s a simple table to show how it might work:
| Retirement Age | FRA at 67 (Now) | FRA at 70 (Proposed) | % Penalty if You Claim at 62 |
|---|---|---|---|
| 62 | ~30% lower | ~35% lower | Higher early penalty |
| 67 | Full benefit | ~20% lower | Reduced benefit |
| 70 | +24% bonus | Full benefit | Delayed credits |
Who Will Be Affected Most?
If you’re already in your 60s, you’re likely safe—most plans would protect you. People in their 30s and 40s face the biggest changes.
Even if you’re way from retirement, these changes could shape your money future, possibly stretching out when you can really retire.
How to Prepare for a Higher FRA
Regardless if FRA becomes 68, 69, or 70, here’s what you can do now:
- Max out your 401(k) and IRA to build your own money pot.
- Delay claiming Social Security as much as you can—waiting longer gives you about 8% more each year up to age 70.
- Have other income sources: part-time work, rental income, or side businesses.
- Keep building skills and take care of your health, so you can work longer if needed.
Challenges and Alternatives
Raising the retirement age isn’t fair to everyone. Those with hard jobs—like construction workers—might struggle to work longer. That’s why people are also thinking about other fixes like:
- Raising the income cap on Social Security taxes (it’s $168,600 in 2024).
- Slowly increasing payroll tax rates over time.
- Changing how cost-of-living raises are calculated, especially for higher-earning retirees.
These ideas might work alone or with raising the FRA, but they’re all hard to pass in politics.
Change can be scary, especially when it affects something as important as retirement.
But by understanding what’s happening—and getting ready—you can still work toward a secure, restful future. If the FRA rises to 68, 69, or even 70, start saving now, delay your claim if you can, and build new income streams.
Keep learning, stay healthy, and be ready to adjust. That way, you won’t just survive the change—you’ll be prepared to thrive in your golden years.
FAQs
Will this change affect people who are already retired?
Mostly no. Most proposals say current retirees and those close to retiring would still get the benefits they expected.
Can I still claim Social Security early if FRA goes up?
Yes, you can—but your monthly check will be even smaller than before.
What’s the highest age someone can wait to claim benefits?
70 years old. Waiting longer than that doesn’t increase your benefit any further.