The age at which you claim Social Security can greatly impact the amount you will receive as benefits due to the specific policies in place regarding the retirement age. Benefits can be claimed from the Social Security Administration (SSA) starting at age 62, however, the “full retirement age” is actually 66-67. If you claim Social Security before reaching the full retirement age, your benefits will be subject to a reduction of up to 30%, and if you claim at your retirement age, you will receive 100% of the benefits you are eligible for.
When the Social Security program was first introduced almost a century ago, the full retirement age was 65, however, following the 1983 amendments, the retirement age has gradually been increasing in two month increments to bring the full retirement age up to 67. This is due to occur in 2026 and following this, the retirement age will remain at 67 for those born in 1960 and later — unless Congress intervenes and this may just be a possibility in the near future if speculation is to be believed.
A major trust fund used as a supplementary source of revenue to pay benefits is currently on a seemingly short road to insolvency, and if lawmakers do not make a sustainable change to the program soon, beneficiaries will be hit with benefit cuts by as soon as 2033. As potential solutions are being debated, the question of raising the retirement age further has also been raised. Here is everything you need to know.
SSA Commissioner says “everything’s being considered”
In a recent interview with Fox News, SSA Commissioner Frank Bisignano was asked if raising the retirement was under consideration in the context of the projected Social Security Shortfall, and Bisignano responded with the following: “I think everything’s being considered, will be considered.”
While Bisignano’s response could be considered ambiguous or generalized, fears that the retirement age will indeed be increased began growing. Not too long after the interview, however, Bisignano shared a post on X to assure the people that the retirement age will not be increased at this time. The post read as follows: “Let me be clear: President Trump and I will always protect, and never cut, Social Security. That’s why we have made many vital reforms, such as cutting waste, fraud, and abuse from the program, to ensure the solvency of Social Security for future generations of Americans. Raising the retirement age is not under consideration.”
On September 30th, a group of Senate Democrats wrote a letter to the White House seeking clarification regarding the Trump Administration’s plans for Social Security and the retirement age, citing the SSA Commissioner’s comments during the interview. The letter was drafted by Sens. Elizabeth Warren (Mass.), Kirsten Gillibrand (N.Y.), Richard Blumenthal (Conn.), Jacky Rosen (Nev.), Chris Van Hollen (Md.), Tammy Duckworth (Ill.) and Tammy Baldwin (Wis.).
“Raising Social Security’s full retirement age would force Americans to work longer, cut[ting] benefits for nearly three-quarters of Americans and putting many low- and middle-income workers at risk of economic insecurity once they leave the workforce,” the senators wrote. A list of questions aimed at providing the American people with clarity were presented to the White House in the letter as well, with the Senators seeking a response by no later than October 13th.
What is causing the shortfall?
According to the trustees’ report, the OASI trust fund is projected to become insolvent by 2033, at which point a 23% cut to benefits will automatically be triggered. The financial health of the program has been deteriorating for some time now, with the trustees noting that, “although the OASI Trust Fund depletion year remains the same, both the OASI and OASDI depletion dates advanced by about 3 calendar quarters, relative to last year’s projection.”
Reliance on the trust funds have increased as of late due to a disproportionate ratio of workers to retirees. Baby boomers are all reaching retirement, however, the number of workers entering the workforce and paying into the Social Security payroll tax are not matching up. The trustees also cite the Social Security Fairness Act and its accompanying retroactive payments as a driving force behind the accelerated shortfall date. The effects of the One Big Beautiful Bill Act will also likely worsen the financial standing of the program.