Goodbye to retirement at 67 – The United States plans to pass a reform to further delay the retirement age – here’s how it affects you

The never-ending controversy around retirement age is back on cable news, in your group texts, everywhere! Now, the latest rumor says Uncle Sam is gearing up to shove full benefits past age 67.

Relax: the rules you live under today haven’t changed—yet. But the talk is real, the stakes are big, and your retirement plan needs to be nimble.

Retirement — What actually changed

The last time Congress truly moved the goalposts was 1983, when lawmakers nudged the full retirement age from 65 to 67 in two‑month steps. That slow climb is still playing out: if you were born in 1959, your FRA is 66 years and 10 months starting in 2025; for 1960 and later, it’s 67 flat. Nothing beyond that is law.

Social Security’s main trust fund is projected to run short around 2033–2034, triggering an across‑the‑board cut to roughly 77–81% of scheduled benefits unless Congress acts. To avoid that, some budget plans suggest raising the FRA to 69 (or even 70) over time.

The Republican Study Committee floated 69; the Congressional Budget Office modeled options to push it higher by adding two months a year. None have cleared both chambers.

What a later FRA could do to your retirement check

Move the finish line and two things happen: the “full” amount arrives later, and claiming at 62 slices even more off the top. Today, filing at 62 trims up to 30% for those born 1960+. If FRA jumps, that cut deepens unless Congress redesigns the formula.

In plain dollars, a $2,000 FRA benefit might drop to roughly $1,400 at 62 now —shave a few more points if FRA creeps up.

Bridging the gap if you leave work first

You may want retirement on your terms, not Congress’s. These tactics buy time:

• Phased retirement: Negotiate three or four days a week; even 15 hours can cover premiums and groceries.
• Cash runway: Park 18–24 months of expenses in a high‑yield savings or money‑market account so you don’t sell stocks in a slump.
• Monetize idle assets: Rent a room ($700–$1,000/month in many markets) or that spare parking spot.
• Part-time with benefits: Chains like Costco, Home Depot and Trader Joe’s offer health coverage at ~20–28 hours.

Tax‑smart withdrawal moves around retirement

Tap taxable brokerage accounts first, letting IRAs and 401(k)s compound. Pull Roth IRA contributions (not earnings) tax‑free if you must. Keep your modified AGI low to qualify for ACA subsidies until Medicare at 65. Every dollar you don’t need to report could save hundreds on premiums.

For every year you wait past FRA up to 70, Social Security boosts your check by roughly 8%. That’s a guaranteed return few investments match today. Past 70 the meter stops, so don’t delay beyond that point.

How to Retire Without Counting on Social Security

If you’re in your 40s or 50s and worried that Social Security won’t be there for you, now’s the time to make a plan. Start by figuring out how much money you’ll need each year to live comfortably. Then, aim to save about 25 times that amount before you stop working.

Use retirement accounts like a 401(k), Roth IRA, or even a health savings account to build your savings faster and avoid taxes. If you have extra money, put it in a regular investment account with low fees.

Try living on a little less now so it won’t feel hard later. Also, think about doing part-time work or turning a hobby into income in retirement. Keep some savings in cash so you’re covered in emergencies without needing to sell investments. The key is to rely on your own money, not the government’s.

Retirement at 67 isn’t gone, but it isn’t sacred either. Build a plan that survives a later FRA: more savings, smarter withdrawals, maybe a side gig. Laws can change fast. Your retirement should be ready sooner. If anything, make sure you put some of your eggs in another basket… not just the Government’s.