The House Republican Study Committee has introduced a proposal to raise the full retirement age for Social Security by two years. Here’s how that could impact future beneficiaries.
GOP Proposal May Increase Retirement Age and Reduce Benefits
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If Social Security is to continue supporting seniors and preventing poverty through monthly retirement payments, the system needs reform. Lawmakers are weighing two main options: raising revenue or increasing the retirement age.
Without any changes, Social Security’s trust funds could run dry by 2034. While payments wouldn’t stop altogether, beneficiaries would face a 23% across-the-board cut in their monthly checks.
Republicans Propose Raising Full Retirement Age to 69
The Republican Study Committee wants to raise the full retirement age (FRA) from 67 to 69. This idea, which has circulated before, would be implemented gradually over eight years. According to the Center for American Progress (CAP), it could begin with people who turn 62 in 2027.
Starting then, the FRA would rise by three months each year, fully phasing in for people who turn 62 in 2034. Critics highlight a Congressional Budget Office (CBO) report showing the plan wouldn’t extend the program’s solvency. They argue it would hit younger workers the hardest and widen economic inequality.
“Raising the retirement age is a benefit cut, as CBO has made crystal clear,” said Senate Budget Chairman Sheldon Whitehouse.
Benefit Cuts Could Cost Future Retirees Thousands
The CAP estimates that increasing the FRA to 69 would reduce benefits for all new retirees by about 12.5% to 14.3% once fully phased in. That would translate to thousands of dollars lost per year.
Under the new rules, the penalty for claiming Social Security at age 62 would rise from 30% to 39%. A median-wage earner turning 62 in 2034 would see their monthly benefit drop regardless of when they choose to retire.
The cuts would range from $345 per month if claimed at 62 to $741 per month at age 70—the current maximum retirement age. That adds up to losses between $4,140 and $8,892 in just one year.
Over a decade, factoring in cost-of-living adjustments, those losses could total between $46,000 and nearly $100,000.
This proposal would impact more than 245 million American workers—or nearly three out of every four people in the U.S.
