The Social Security Fix Most Americans Oppose - And Why Lawmakers Won't Drop It

Few Social Security proposals are as unpopular as raising the full retirement age, but that hasn't stopped it from resurfacing year after year. A recent Ronald Reagan Institute survey found that 74% of registered voters oppose the change, which is hardly surprising when it could reduce future senior benefits.

Many proposals would still allow people to claim Social Security at 62, but they could leave future retirees with smaller monthly checks. Even with strong public opposition, the idea remains part of Washington's effort to shore up the program. Here's why.

A familiar fix that keeps resurfacing as 2032 gets closer

Lawmakers keep returning to a higher retirement age because it reduces future Social Security costs without cutting everyone's benefits overnight. That has become a bigger focus as the program faces a funding shortfall in the early 2030s, leaving Congress under pressure to find ways to close the gap.

Raising the retirement age is also familiar territory. Congress gradually raised the full retirement age from 65 to 67 in 1983, and that change is still being phased in for people born in 1960 or later. For supporters, raising it again is an extension of a policy that's already in place.

That said, the Congressional Budget Office (CBO) found that gradually increasing the full retirement age from 67 to 70 would improve Social Security's long-term finances.

It wouldn't solve the funding problem by itself, but it could reduce the amount Congress needs to make up through other changes.

What your check would actually look like under a higher retirement age

Your full retirement age is when you qualify for 100% of the Social Security benefit you've earned. Today, that age is 67 for anyone born in 1960 or later. If Congress raised it to 70, claiming at the same age would leave you with a smaller monthly check than it does under current law.

For someone entitled to $2,000 a month at today's full retirement age, the difference in claiming at certain ages could look like this: 

• Claim at 62: About $1,400 today, compared with roughly $1,100 under an FRA of 70.
• Claim at 65: About $1,733 today, compared with roughly $1,400.
• Claim at 67: The full $2,000 today, compared with about $1,600 if the FRA increased to 70.
• Claim at 70: About $2,480 under current law, compared with $2,000 if the FRA increased to 70.

That example lines up with Congressional Budget Office estimates, which show that people born in the 1980s who claimed at 65 would receive about 19% less each year under an age-70 proposal.

Who would see the biggest impact

A higher retirement age would hit hardest for people who cannot simply keep working longer. Although Americans are living longer on average, those extra years are not shared equally.

Social Security research found that men in the lowest earnings group could expect to live about 17.7 years after age 65, compared with 21.4 years for those in the highest group.

Workers in physically demanding jobs are also more likely to claim early. A Government Accountability Office study found that blue-collar workers were 55% more likely to start Social Security before full retirement age, even after other factors were considered.

For someone whose job has already taken a physical toll, raising the retirement age would mean a smaller check, not more time to work. People with little saved would have fewer ways to make up the difference while waiting for full benefits.

What else a higher retirement age could affect

If you're married, a higher full retirement age could reduce spousal benefits claimed early and delay the point when full survivor benefits become available.

It could also keep you under the earnings test for longer if you claim Social Security while working. That rule can temporarily withhold part of your check when your earnings exceed the annual limit before full retirement age.

Exactly how those rules would change would depend on the proposal Congress considered.

Current retirees would likely be protected

If you're already collecting Social Security or nearing retirement, a higher full retirement age probably wouldn't affect your benefits. Most proposals phase in the change gradually, with younger workers taking the biggest hit.

One Congressional Budget Office option, for example, would have started with people born in 1964 and gradually raised the full retirement age to 70 for those born in 1981 or later.

Congress could choose a different timeline, but recent proposals generally follow the same pattern by leaving current retirees alone and giving younger workers more time to adjust their retirement plans.

What this means for your planning

Congress has not raised the full retirement age beyond 67, so your Social Security estimate on ssa.gov is still based on today's rules.

If lawmakers eventually approve a higher retirement age, claiming at the same age could result in a smaller monthly benefit than you would receive under the current system. Knowing how the proposal works now can help you plan with fewer surprises if Congress eventually changes the rules.

Bottom line

Lawmakers keep returning to a higher retirement age because it would lower future Social Security costs without changing benefits overnight. Whether Congress ultimately chooses that path is still unknown.

If it does, the biggest effect for future retirees would be a smaller monthly check unless they delay claiming longer than today's rules require. Following the debate now can help you understand how any future changes could fit into your retirement plan before they affect the benefits you expect to receive.

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