Social Security’s Full Retirement Age to Increase Next Year
Social Security’s “full retirement age” will rise to 66 years and 10 months next year, meaning those nearing retirement will have to wait a little longer to claim a larger benefit. The full retirement age, also known as the full retirement benefit age, was increased in 1983 from 65 to 67 in two-month increments over a 22-year period.
Retirees can begin collecting their Social Security benefits before reaching the full retirement age, with the minimum age being 62. However, those who claim early will have their monthly benefit permanently reduced by up to 30%. On the other hand, delaying claiming benefits can reward retirees with a bonus of up to 8% for waiting until they are eligible to receive the maximum benefit.
In addition, Social Security recipients will receive a 2.5% cost-of-living adjustment (COLA) for their benefits next year to account for inflation. The COLA is the smallest since 2021 and comes as inflation has eased in the last two years.
Social Security’s finances have been strained by the aging of America’s population, with the program’s primary trust fund projected to be depleted in 2033. This could lead to a 21% across-the-board benefit cut, according to the nonpartisan Committee for a Responsible Federal Budget (CRFB).