Politicians are becoming increasingly concerned over the long-term viability of Social Security, which is at risk of insolvency, with many policymakers suggesting changes to the Full Retirement Age (FRA) are necessary. Hikes to the Retirement Age are usually based on life expectancy data as the longer people live, the longer they can remain in the workforce.
Research carried out by the Centers for Disease Control and Prevention data found that the average life expectancy rose by five and a half years from 1950 to 2016.
As a result, this would imply that today’s Retirement Age to claim full Social Security payments should be around 70 to 71 years old.
When Social Security was first created back in 1937, the FRA was 65 years old and it has only risen by two years since then.
In the Congressional Research Service’s overview of the Full Retirement Age, it was determined raising the age threshold could “adversely affect” the lives of millions of Americans.
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The report stated: “Over the years, many proposals have been put forth to increase the FRA, increase the EEA, or both.
“Supporters of increasing the retirement age contend that the average life expectancy is increasing, health conditions of older workers are improving, and job characteristics are more suitable for older workers.
“Opponents of increasing the retirement age often argue that gains in life expectancy and health status, as well as changes in job characteristics, have not been equally distributed across individuals with different characteristics such as sex, race, educational attainment, or income level.
“Therefore, some researchers argue that increasing the retirement age may adversely affect Social Security benefits for certain workers, particularly low-wage
workers or lower-educated workers.”
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Currently, the Full Retirement Age for most people is 67 but different rules are depending on someone’s circumstances.
People are allowed to retire early at 62 and claim Social Security benefits but will only do so at a reduced rate.
Notably, Americans aged 65 or over are entitled to Medicare Benefits as long as they have paid the associated taxes for at least 10 years.
Workers can postpone their retirement from 67 to 70, which can boost the amount they get from their benefits.
Changes were last made to the Retirement Age by the Social Security Administration nearly four decades ago.
The FRA was raised as part of the wider Social Security Amendments of 1983 and mainly impacted anyone who retired at the dawn of the millennium.
With this legislation, the biggest change was that Americans would have to wait until 67 to claim their full retirement benefits.
Furthermore, the federal Government raised the amount offered by the delayed retirement credit for workers who continued to work past the Full Retirement Age.
Currently, here is when people hit the FRA and are allowed to access their full Social Security benefits:
- If born between 1943 and 1954, your FRA is 66
- If born in 1955, your FRA is 66 and 2 months
- If born in 1956, your FRA is 66 and 4 months
- If born in 1957, your FRA is 66 and 6 months
- If born in 1958, your FRA is 66 and 8 months
- If born in 1959, your FRA is 66 and 10 months.
- If born in 1960 or later, your FRA is 67 years old.
