The retirement age in the United States for full Social Security benefits will increase to 67 starting in 2026. This change will affect millions of Americans who are planning to retire.
What Happens If You Retire Early?
If you decide to start collecting Social Security at age 62, your monthly benefits could be reduced by up to 30%. On the other hand, if you wait until age 70, you can receive higher monthly payments.
Why Is the Retirement Age Increasing?
The retirement age is going up because people are living longer. When Social Security started in 1935, the average life expectancy in the U.S. was just 61 years. Today, it’s around 79 years.
Also, there are fewer workers supporting each retiree. In 1955, there were 8.6 workers per retiree. By 2013, that number dropped to just 2.8. This puts more pressure on the Social Security system.
To deal with this, a law was passed in 1983 under President Ronald Reagan to slowly raise the retirement age from 65 to 67.
What’s the Future of Social Security?
A recent report says Social Security will only have enough money to pay full benefits until 2034. After that, if no changes are made, only 81% of the promised benefits can be paid out. This could reduce the average monthly check from $1,976 to about $1,600.
In 2024, the Social Security trust fund lost $67 billion, dropping to $2.72 trillion. The program has been spending more than it earns since 2010, raising concerns about its future.
