For decades, “retiring at 67” has been the baseline assumption baked into American life. Not quite early, not quite late—just the sweet spot where Social Security says, Okay, you’ve earned it.
But lately? That number’s looking a bit shaky. Between people living longer, Baby Boomers aging out of the workforce, and Social Security feeling like it’s standing on wobbly stilts, the whole retirement equation might be overdue for a makeover.
And by makeover, we mean… pushing the retirement age higher.
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What’s the Full Retirement Age Right Now?
Right now, your full retirement age—or FRA for Social Security benefits—depends on your birth year. If you were born in 1960 or later, it’s age 67. Folks born before that have an FRA between 66 and 67, give or take a few months.
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But here’s the kicker: there’s growing political and financial momentum to raise that age even further. Think 68. Or 69. Maybe even 70 for younger generations. It’s not a done deal, but the rumblings are getting louder.
Why Are We Even Talking About This?
Short version? Social Security’s trust fund is drying up.
According to the 2025 Social Security Trustees Report, the program’s trust fund is projected to run out by 2034 if no action is taken. Once that reserve dries up, ongoing payroll taxes would only cover about 79% of scheduled benefits.
So unless something gives—more taxes, fewer benefits, or changes to eligibility—we’re staring down a benefits haircut. And raising the retirement age is one lever lawmakers keep reaching for.
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What’s Driving the Push to Raise the FRA?
Here are the big three:
- We’re living longer. A 65-year-old today is likely to live another 20 years or more. That’s great for humanity, not so great for entitlement programs.
- The worker-to-retiree ratio is shrinking. Fewer people are paying into the system compared to those drawing from it.
- Costs are ballooning. With health care expenses rising and more retirees living longer, the math just isn’t adding up.
Retiring Early Could Sting More
If the FRA shifts to 70, someone retiring at 62 might take a hit of 30%–35% off their monthly benefit. That’s steeper than the roughly 25% haircut they’d get under today’s system.
Here’s a rough idea of how it could look:
| Retirement Age | FRA at 67 | FRA at 70 |
|---|---|---|
| 62 | ~75% of benefit | ~65–70% of benefit |
| 65 | ~86% of benefit | ~80% of benefit |
| 70 | ~124% of benefit | Full benefit |
So yeah—when you retire will matter even more than it already does.
Who’s Actually Affected?
Relax, if you’re already retired (or knocking on that door), chances are none of this will apply to you. Most proposals draw a line in the sand somewhere around the mid-1970s birth years and younger. People born after 1975–1980 would probably see phased-in changes.
That puts Gen X, Millennials, and Gen Z squarely in the crosshairs. Sorry, folks.
What Can You Do If the FRA Increases?
If 70 becomes the new 67, you’ve got options. But you’ll need to be more intentional. Start thinking about:
- Saving earlier, and saving more. Ramp up those 401(k) and Roth IRA contributions while you’ve still got the time.
- Diversifying income streams. Side gigs, rental properties, dividend-paying investments—it’s all on the table.
- Delaying retirement if possible. Waiting until 70 can still give you a bigger monthly check thanks to delayed retirement credits.
- Staying informed. Policy changes are slow but steady—stay plugged in so you’re not caught off guard.
Are There Alternatives to Raising the FRA?
Yep, and some are pretty compelling:
- Lifting the payroll tax cap so high earners contribute more
- Adjusting cost-of-living formulas to grow benefits slower over time
- Increasing the payroll tax rate slightly
- Introducing means testing for wealthier retirees
These options could help patch Social Security’s budget without asking everyone to work longer.
Bottom Line: Change Is Coming
Look, whether it’s raising the retirement age or some combo of reforms, one thing’s crystal clear: this system is going to change. If you’re under 50, plan for that.
Will you have to work past 67? Not necessarily. But if you want the same benefits your parents got, you might need to get creative. Or work longer. Or both.
The rules may be shifting, but your financial future is still in your hands.
FAQs
Will current retirees lose benefits?
Nope. Most proposals leave current retirees and near-retirees untouched.
Can I still retire early?
Yes—but your monthly benefit could take a deeper cut if the FRA rises.
Is there any benefit to delaying retirement past FRA?
Yes! You can boost your benefit up to 124% if you delay until age 70.
What should I do now?
Keep saving, diversify your retirement strategy, and stay informed on policy news.
Who’s most likely to be affected?
Anyone born after 1975–1980 could see phased-in changes depending on what Congress passes.
