The Social Security full retirement age is about to increase again, affecting when Americans can claim their full benefits and reshaping retirement plans for those nearing eligibility.
Key Facts:
– Next year, the full retirement age increases to 66 years and 10 months for people born in 1959.
– By 2027, those born in 1960 or later will need to wait until they’re 67 to receive full benefits.
– Early claimants can start at age 62 but receive permanently reduced payments, while those who wait beyond the FRA can get up to an 8% boost.
– A 2.5% cost-of-living adjustment will raise benefits next year, the smallest increase since 2021.
– The primary Social Security trust fund is projected to run dry in 2033, triggering a 21% benefit cut if no reforms are enacted.
The Rest of The Story:
Social Security, once set at a flat retirement age of 65, has gradually raised that threshold over time.
Next year’s scheduled increase to nearly 67 will shift when millions become eligible for full benefits.
At the same time, Americans face a modest adjustment to their checks, as a small cost-of-living increase is coming due to lower—but still persistent—inflation.
These changes all play out against a backdrop of tightening finances.
Today’s retirees must navigate a system straining under demographic shifts, such as fewer workers supporting a growing number of retirees.
Without substantial policy changes, the trust fund backing these benefits could be drained by 2033, leading to painful cuts and placing a heavier burden on those who rely on these crucial payments.
Congress shouldn’t raid $200 billion dollars from the Social Security Trust Fund
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— Mike Lee (@BasedMikeLee) December 18, 2024
Commentary:
Congress has spent decades dodging the hard decisions necessary to protect Social Security.
Instead, they’ve often tapped into its funds, diverted attention with new giveaways, and added benefits for people—including illegal immigrants—who haven’t paid into the system.
This tinkering leaves the workers who contributed faithfully at risk of getting less than what they were promised.
Both parties share blame for pushing meaningful reform down the road.
Neither side wants to tell voters that tough choices need to be made.
Instead, they keep spending money we don’t have, undermining a program many Americans rely on.
It’s time to restore honesty and solvency to Social Security so the people who paid in get the benefits they earned.
The Bottom Line:
If nothing changes, future retirees face higher eligibility ages, smaller increases, and a system teetering on financial collapse.
Lawmakers need to stop short-term fixes and commit to preserving Social Security’s long-term stability.