Full retirement age is that time in our lives where we can finally rest, relax, and really lean into retirement. Seniors are excited for full retirement age because they get to enjoy the total benefit they’ve patiently put off. Age is one of the biggest factors that affect Social Security, and claiming before full retirement age keeps us from that greatest benefit. The other issue is insolvency. Social Security, being closer to insolvency than ever before, may increase the retirement age in ways seniors were never expecting, CNBC’s Lorie Konish reports.
Upward and Backward?
Now, the full retirement age is 67 years old, instead of the traditional 65. The full retirement age has been on a steady incline for 20 years; with people able to claim their full benefit earlier or later, depending on their birth year. As of 2022, everyone eligible for Social Security should have the same retirement age, but that may soon change.
The federal government has several options to solve the Social Security insolvency crisis. Those options include:
- Raise payroll taxes
- Increase the retirement age
- Increase benefit taxes
Solely raising the retirement age is a mistake, as it works exactly like a benefit cut. By raising the age, seniors must prolong claiming their benefits even longer, or receive a penalty. When the retirement age went from 65 to 66, it amounted to a five percent benefit cut for seniors forced to wait.
Solve the Insolvency
Raising the age might be necessary eventually, but it doesn’t work if we don’t find a way to fund the trust proportionately. The Council for Retirement Security is working diligently to protect the Trust against insolvency. Join the Council and strengthen its message by signing the Social Security Lock Box Act Petition, protecting your benefits for today and tomorrow.