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Mradul Sharma

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  • Published: Jun 11 2025 03:26 PM
  • Last Updated: Jun 11 2025 03:28 PM

A new proposal may raise the Social Security retirement age to 69 by 2033—affecting 257 million Americans and reducing benefits.


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A recent policy proposal from the Republican Study Committee suggests gradually raising the full retirement age (FRA) for Social Security to 69 by the year 2033. If implemented, the change would start in 2026 and affect people who are currently 30 to 55 years old. The plan is being presented as a way to extend the life of the Social Security Trust Fund, which is projected to run short of funds by 2034.

However, this proposal has raised concern among workers and retirees. Many believe that increasing the retirement age may reduce their lifetime benefits or force them to work longer than planned.

Who Will Be Affected by the Retirement Age Increase?

The proposal could impact up to 257 million Americans, mostly those born after 1974. These individuals would see their full retirement age gradually move from 67 to 69. That means they would either have to wait longer to receive full benefits or accept smaller monthly payments if they retire earlier.

This change would not affect current retirees or people nearing retirement. However, younger workers will need to rethink their long-term plans, especially those in physically demanding jobs who may not be able to work well into their late 60s.

How Much Will Benefits Be Reduced?

Raising the retirement age to 69 would result in a reduction of yearly benefits for many workers. According to financial experts, some retirees could receive $3,000 to $4,000 less per year. Over the span of a 30-year retirement, this could add up to a loss of $100,000 or more in total benefits.

This potential cut has caused concern among people who rely heavily on Social Security for their income after retirement. Experts recommend increasing personal savings now to make up for possible future shortfalls.

Social Security Retirement Age Set to Rise in 2026

Will This Change Fix Social Security's Financial Problems?

While the plan may help delay Social Security's financial troubles, it’s not a permanent solution. Government analysts suggest that increasing the retirement age would only extend the fund’s life by about one additional year, from 2034 to 2035.

Critics argue that this small gain does not justify the long-term financial burden it could place on millions of future retirees. They urge lawmakers to consider broader reforms, such as raising the payroll tax cap or adjusting the benefit formula.

What Should Americans Do Now to Prepare?

If you're in your 30s, 40s, or 50s, it’s smart to start preparing for these possible changes. Consider increasing your 401(k), IRA, or other retirement savings contributions. Make use of employer matching programs and take advantage of health savings accounts (HSAs) where available.

It’s also a good idea to review your estimated Social Security benefits using tools on the SSA website. Planning ahead now could help you avoid surprises later and give you more control over your financial future.

Image Source: The Sun.com 

FAQ

The proposal suggests raising the full retirement age from 67 to 69 by the year 2033.

People born after 1974, currently aged 30 to 55, would be impacted if the plan is approved.

Yes, retiring earlier than the new FRA could result in lower monthly benefits, with losses reaching up to $3,500 per year.

Not entirely. It could delay insolvency by one year, but more reforms would still be needed.

Boost your personal savings, plan for a later retirement date, and stay informed about Social Security updates.

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