It may seem like there’s plenty of time before retirement becomes your concern.

But changes quietly being proposed now could dramatically alter how Americans experience their later years.

For millions, that shift could mean working longer—or facing a significant financial shortfall.

And the conversation isn’t about if it will happen, but when.



A major proposal from the Republican Study Committee would raise the full retirement age—known as FRA—from 67 to 69 by 2033.

This would begin in 2026 and gradually increase the FRA over eight years.

In contrast, when the retirement age was last adjusted (from 65 to 67), it was spread out over 33 years.

If this latest plan is enacted, the effects would most heavily impact Americans currently between the ages of 30 and 55.


According to estimates by the Congressional Budget Office, affected individuals could lose about $420,000 in total lifetime benefits.

This calculation factors in inflation, average life expectancy, and long-term economic conditions.

Broken down annually, retirees would receive around $3,500 less each year—amounting to an average 13% cut in benefits.

Some may lose more than $3,500 a year, while others might lose less depending on their work history and when they claim benefits.


Also read: The simple mistake that wiped out a man’s entire retirement savings

Altogether, about 257 million Americans could be affected by the change, significantly altering their retirement strategies.

The proposal could have an outsized impact on Americans in more physically demanding fields such as construction, healthcare, and service work.

These individuals often can’t work into their late 60s and may not be healthy enough to delay retirement.

Due to this, experts predict many of them might instead turn to claiming Social Security Disability Insurance early.

If more Americans file for disability benefits in response to an increased FRA, that system could also become overburdened.

It’s a shift that could solve one problem—only to create another.

Even with the FRA raised and benefits reduced, the Congressional Budget Office says the change would only delay Social Security’s trust fund depletion by a single year, from 2034 to 2035.


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Full Retirement Age refers to when you’re eligible to receive 100% of your Social Security retirement benefits.

Currently, those born in 1960 or later qualify for full benefits at age 67.

Those born between 1955 and 1959 qualify at 66 and a certain number of months:

• 1955: 66 and 2 months
• 1956: 66 and 4 months
• 1957: 66 and 6 months
• 1958: 66 and 8 months
• 1959: 66 and 10 months
  

And for those born between 1943 and 1954, FRA is 66.

In light of these uncertainties, financial advisors are urging Americans to be proactive.

One major step is to adjust retirement savings plans with the expectation of lower future benefits.


Boosting 401(k) contributions by 2% to 3% could help offset potential cuts.

Employers often match 2% to 4% of employee contributions, making this a valuable savings strategy.

Another avenue is an Individual Retirement Account (IRA), which offers more investment flexibility.

Unlike a 401(k), an IRA isn’t employer-tied and can be structured to suit personal savings goals.

Traditional IRA contributions are tax-deductible, and funds grow tax-free until withdrawn.

Combined with disciplined saving, these options can help close the gap if the FRA increase becomes law.

As lawmakers debate what comes next for Social Security, it’s clear that millions of Americans may need to start rethinking their retirement timelines.

Read more: Don’t let these 3 surprising Social Security changes drain your retirement in 2025
What are your thoughts on this potential shift in retirement age? Would you be prepared to work longer—or would this change force you to rethink your retirement strategy? Join the conversation below.