There’s been a lot of discussion lately about the future of Social Security, and one of the biggest questions on the table is whether the full retirement age could be raised. Social Security Administration Commissioner Frank Bisignano, appointed under President Trump, recently suggested that “everything’s being considered” when it comes to reforms that could shore up the program’s long-term solvency.
Why does this matter? The Social Security trust funds are projected to run out of reserves around 2034. Without changes, benefits would have to be funded entirely from payroll tax revenues, which could result in an across-the-board cut of roughly 20 to 25 percent. To prevent this, policymakers are reviewing options such as raising the cap on taxable earnings and, most notably, increasing the retirement age.
If the full retirement age does rise, it would mean smaller benefits for those who claim early, more years in the workforce for many Americans, and potential hardship for people in physically demanding jobs. Supporters argue that it could significantly reduce the program’s costs, while critics warn it would effectively amount to a benefit cut, since delaying full eligibility lowers lifetime payouts for many.
Proposals under consideration have included gradually increasing the age by a couple of months each year until it reaches 69, or tying the retirement age to life expectancy so that it rises automatically as Americans live longer. Whatever form it takes, the change would likely be phased in over time, giving workers a chance to adjust.
For those planning their own retirement, now is a good time to stay informed, revisit savings strategies, and consider how timing your claim for Social Security could affect your future. If you’re in a job that might not allow for longer work, planning ahead is even more important. And of course, keeping your voice heard with lawmakers can help shape the outcome.
Social Security has been a cornerstone of retirement security for generations. Any change to the retirement age would ripple across millions of lives, and while nothing is set in stone, the fact that it’s being seriously discussed means preparation and awareness are more important than ever.