Retirement in the U.S. might change soon, especially if new plans from Republican lawmakers move forward. A proposal in the Republican Study Committee’s (RSC) 2025 budget could raise the full retirement age (FRA) from 67 to 69.
This plan is supported by nearly 80% of Republicans in the U.S. House of Representatives and could impact when and how millions of Americans retire, particularly those currently in their 30s to 50s.
What is the Full Retirement Age (FRA) and Why is It Being Raised?
The full retirement age (FRA) is the age when you can start receiving your full Social Security benefits. Right now, it’s 67 for people born in 1960 or later. But the new RSC plan could raise it to 69 for younger workers.
This change is being considered because Social Security is facing long-term financial challenges. The goal is to keep the system running longer, just like in 1983 when the FRA was raised from 65 to 67. Supporters believe this change is necessary to avoid a financial crisis, but critics argue it could be tough for people with physically demanding jobs or poor health to work until age 69.
Who Will Be Affected by the FRA Increase?
If this proposal is approved, the increase in the retirement age will happen slowly between 2026 and 2033. Those who will be most affected include:
People aged 30 to 55 today
Younger workers just starting their careers
Anyone planning to retire early at age 62, who may see even bigger cuts to their benefits
This change could be particularly difficult for people in jobs like construction, delivery, or nursing, where working into the late 60s may not be possible.
Save more: Build up enough savings to cover 18 to 24 months of expenses.
Consider phased retirement: You could reduce your work hours gradually instead of quitting all at once.
Look for part-time jobs: Companies like Costco or Home Depot offer part-time jobs with health benefits.
Earn from assets: Rent out a room (you can make $700–$1,000/month) or a parking space (you can make $150–$300/month) for extra income.