Is the US raising the retirement age again? Social Security full benefits may come later than 67

Currently, employees in the US can claim full Social Security benefits by retiring at 67. However, proposals are afoot to raise it even higher. Workers in the United States may soon be faced with a retirement age of over 67. Initially, it was 65, but now, as per CNBC, those born after 1959 will be eligible for receiving Social Security benefits only when they are 67.

But that’s not all, due to the growing cost of providing Social Security to retirees, the government is considering raising the retirement age when one becomes eligible for Social Security benefits even further.

So, those in their 60s now need to plan more cautiously about their retirement. If they choose to retire at 62, the earliest option available, their monthly benefits under Social Security would be 30% less, USA Today reports.

On the flip side, employees can delay their retirement till the age of 70, in which case their monthly benefits increase by 8% annually beyond the age of 67. Retiring at 70 gets the highest possible monthly allowance.

More changes to the retirement age on the anvil?

As per USA Today, Social Security Administration Commissioner Frank Bisignano, in an interview with Fox News, said that “everything is being considered” when asked if the retirement age would be increased further.

However, he also backtracked slightly the next day by posting on X that “Raising the retirement age is not under consideration.”

The average American doesn’t seem to be fully aware of the different options for retirement. The CNBC report cites a study by the Nationwide Retirement Institute where only 21% of respondents were aware at what age they become eligible for receiving full benefits post-retirement.

Rising retirement age

Denmark has raised the retirement age to 70, but that is not an easy decision for the government of the US to take. The upward movement of the retirement age started in 1983 through legislation that sought to curb government expenditure, the CNBC report informs.

For those born in 1958, the full retirement age (FRA) is 66 years and eight months. For those born in 1959, it is two months more, and for those born in 1960 or later, it is 67, according to United Row.

Further increase is being discussed in the Congress. Senator Rand Paul moved a proposal to take the retirement age to 70, but it was rejected. Democrats, on the other hand, are opposed to a raise in retirement age, as per CNBC.

Also read: Social Security to end paper checks on September 30 — here's how to keep receiving benefits

FAQs

What is the retirement age in USA?

There are various options available for employees in the USA. The minimum age at which a person can retire and claim Social Security benefits is 62. 67 is the minimum age for retirement with full Social Security benefits. Every year beyond 67, up to 70, sees an annual 8 percent increase in monthly benefits.

Are there proposals for increasing retirement age?

Yes, Senator Rand Paul moved a proposal to increase the retirement age, but it was defeated. The Trump administration is thinking over the matter.

What is the best age for a person to retire at?

The best age to retire depends on various factors, including life expectancy and savings.