Legislative updates continue in the United States. Now, the House Republican Study Committee seeks to raise the FRA to 69 by 2033. Starting in 2025, a new bill backed by Republican lawmakers proposes raising the full retirement age (FRA) to 69, a measure that could directly affect more than 250 million Americans in the coming decades.
This, therefore, adds to the list of legislative developments that directly affect the American population. The cost of living is rising, salaries are not keeping pace with the economy, and now this is a new blow, especially for the lower classes and groups of citizens in jobs that require intense physical effort.
Those affected could lose up to $420,000
The Congressional Budget Office estimates that those affected could lose up to $420,000 in lifetime benefits due to the reduction in the number of years during which they could receive full payments. This would amount to about $3,500 less per year over an average 30-year retirement.
The benefit amount is calculated based on the 35 years of highest earnings, adjusted according to the national wage index. Added to this calculation is the cost-of-living adjustment (COLA), which will be 2.5% in 2025, benefiting both those already receiving payments and those nearing retirement.
Americans work under the assumption that the standard retirement age is 65. However, the Social Security Administration has changed this, and full retirement age is when workers begin collecting benefits based on years worked and earnings, thus encouraging a later retirement.
The proposal would primarily affect those currently between the ages of 30 and 50
According to reports from CBS News and The Sun, the proposal would primarily affect those currently between the ages of 30 and 50, meaning workers who have not yet entered the final years of their working lives but are accumulating years of Social Security contributions.
With this, the early retirement age could also be delayed
Currently, workers can retire early as early as age 62, albeit with a permanent reduction in their monthly benefits. If the new plan goes ahead, the early retirement age could also be delayed, further reducing access to benefits for those who need to leave work before the expected age. The Social Security Administration defines FRA as the age at which a person can begin receiving full Social Security benefits, based on their work history and accumulated earnings.
Currently, that age ranges from 66 to 67, depending on the worker’s year of birth. But the Republican Study Committee’s new proposal seeks to gradually raise it to 69 by 2033.
Young people are also seeing how aid for loans and scholarships is being curtailed
This change, if implemented, would begin in 2026 and would be gradual. Unlike the last major adjustment -implemented in 1983- this modification would be more rapid, generating concern among millions of citizens.
Americans are living in times when staying abreast of every new development from the Trump administration is essential. Especially when it comes to financial aid, taxes, and retirement. As we’ve been reporting in recent days, young people are also seeing how aid for loans and scholarships is being curtailed as new regulations are being approved. Now, with the retirement age moving forward, they must also begin to focus on the future that is beginning to be written today.
