Millions to have their income SLASHED under Social Security switch – they’ll have to wait longer to retire, expert says ...Middle East

MILLIONS of Americans are being forced to wait years longer to begin claiming their Social Security checks as the retirement age reaches an all-time high.

With the SSA’s recent move to bump up the full retirement age to 67 – and potentially even higher in the coming years – a retirement expert is warning that Americans are at risk of seeing their benefits slashed.

The Social Security program has provided disability, survivors, and old-age benefits to millions of Americans each year for nine decades.

The latter category is the primary purpose of the program with the largest portion of benefits paid out to retirees, who make up roughly 75% of the 69.6 million Social Security recipients.

The amount that an individual receives in retirement benefits is dependent upon several factors, with the age at which they begin claiming their Social Security payments significantly affecting the monthly amount.

Americans can secure their entire benefit by retiring at their full retirement age, or FRA, which varies based on their birth year.

Opting to retire before or after their FRA can significantly reduce or boost their monthly checks.

Unfortunately for those born on or after 1960, the SSA is rolling out a change initiated over 40 years ago, pushing the retirement age to its highest ever levels – and the federal agency is eyeing an even bigger jump in the coming years.

What is full retirement age?

Full Retirement Age, or FRA, is the age at which you become eligible to receive 100% of your Social Security retirement benefits without penalty, based on your lifetime earnings. 

Also referred to as “normal retirement age,” your FRA is determined by the Social Security Administration based on your birth year:

Social Security expert Aaron Cirksena, CEO of retirement planning company MDRN Capital, spoke exclusively with The U.S. Sun about the impacts of the FRA change on retirees and what they can expect down the line.

RETIREMENT RUSE

The Social Security Act, which established the social program in 1935, was amended in 1983 to slowly raise the retirement age in response to longer life expectancies.

As of this year, the FRA has now increased from 65 – previously considered the “golden age” for retirement – to 67, forcing Americans born in 1960 or later to work an extra two years to claim their full Social Security benefits.

“As the full retirement age for Social Security shifts to 67, many Americans are realizing they’ll need to wait longer than expected to claim full benefits, often too late in the game to adjust their plans,” Cirksena previously told The U.S. Sun.

“While this change was baked into law back in 1983, its real impact is only now hitting millions nearing retirement.”

As the SSA confronts financial solvency issues, the move to delay the FRA is the agency’s way to reduce Americans’ lifetime benefit payouts “without slashing checks outright,” according to the expert.

Workers can still opt to retire before their FRA, starting at age 62, but risk losing out on a hefty chunk of change for the rest of their lives.

Those who claim their Social Security benefits early could see their monthly check reduced by as much as 30% – an unfair prospect for those who cannot reasonably delay their retirement, such as individuals in physically or mentally taxing fields or dealing with health challenges.

For example, someone who qualified to receive $1,000 if they were to begin collecting Social Security at 67 would only receive $700 if they retired at 62.

ON THE RISE

While the full retirement age has effectively increased to 67 in 2025, Americans may soon need to postpone their retirement even longer as the SSA eyes another hike to the FRA.

“Raising the retirement age again is not far-fetched,” warned Cirksena.

The Republican Study Committee in the House is considering slowly raising the FRA to 69 from 2026 to 2033, hitting Americans currently between ages 30 and 55 the hardest.

HOW TO SUPPLEMENT YOUR SOCIAL SECURITY

Here's how to supplement your Social Security:

Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.

Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.

The roughly 257 million seniors impacted by the change would lose around $420,000 each in their lifetime benefits, per an estimate from the Congressional Budget Office, considering long-term impacts and economic factors such as inflation.

These Americans would see on average $3,500 less annually from Social Security throughout their retirement, although some retirees could lose out on much more each year.

Raising the FRA even higher past 67 could be another effort by the SSA to address its financial troubles.

“Lawmakers could see it as a politically safer lever to pull than raising taxes or cutting benefits,” said Cirksena.

With Social Security’s trust funds projected to be depleted in under 10 years, the retirement expert warned that future retirees will bear the brunt of the burden should the FRA increase again, especially cash-strapped Americans unable to delay their retirement.

Raising the retirement age again is not far-fetched. Lawmakers could see it as a politically safer lever to pull than raising taxes or cutting benefits. But the cost will fall squarely on future retirees, especially lower-income workers who can’t delay retirement and may already be under-saved.”

MONEY MESS

Americans project a bleak future for Social Security, with the increased FRA seen as yet another indication of the program’s instability.

There are estimates that the trust fund for retirement benefits could run out between 2033 and 2034, at which point seniors would receive approximately 77% of their full payments, per a 2024 report by the Social Security Board of Trustees.

“I am 50 next month and don’t expect Social Security,” cried one Facebook user in response to the recent FRA increase.

“I’m screwed and so are the generations after me.”

Cirksena emphasized that even if the Social Security trust fund were to run out of money, the federal agency would still receive income from payroll taxes.

“The future of Social Security won’t be about whether the program disappears, but how much less it provides,” said the retirement expert.

“Unless Congress acts, current projections show a benefit cut of around 20% by 2033. That’s not ‘running out,’ but for many retirees, it could feel like it.”

Cirksena predicted that Americans were likely to see more gradual changes rolled out as the SSA grapples with its financial challenges, such as yet another increase to the FRA.

The future of Social Security won’t be about whether the program disappears, but how much less it provides. Unless Congress acts, current projections show a benefit cut of around 20% by 2033. That’s not ‘running out,’ but for many retirees, it could feel like it.”

Raising payroll taxes for high earners or adjusting benefits to favor lower-income retirees are also possibilities, according to the expert.

“Each of these options kicks the can further, but none fully solve the funding gap,” he said.

Check out these other big changes underway at the SSA.

Social Security recipients need to rush to the bank before a policy change affects payouts – 485,000 risk losing checks.

Plus, beneficiaries will see a huge $40.70 bump to COLA next year according to a crucial reason.

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