Why Retirement Plans Could be Changing for Many Workers This Year

Sixty-seven is the new 65… at least for retirement. Starting this year, the retirement age to receive full Social Security benefits has increased to 67 for those born in 1960 or later. According to an article in the Metro West Daily News, the full retirement age (FRA) started steadily increasing after Congress passed a law in 1983 to raise the FRA because people were living longer.

This change was supposed to help extend shrinking Social Security funds, but raising the FRA is not enough to save the insolvency issue. The Social Security trust fund is expected to be depleted in less than 10 years. If nothing is done, benefits will likely be reduced by about 20 percent.

The Seniors Trust believes the best way to ensure the long-term solvency of the Social Security program is for Congress to enact The Social Security Expansion Act. This landmark piece of legislation will also give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), and increased minimum benefits.