By Jake FitzGerald

Copyright fool

Imagine thinking you can retire at 67, only to find out later that “full retirement age” has crept up to 69. That possibility isn’t science fiction, and it’s now part of the public debate. The looming question: Will future retirees have to work longer just to get full Social Security benefits?

If you’re saving for retirement or already in your 40s or 50s, you need to understand these shifts now.

What is the “full retirement age” now, and how it’s changed

Right now, for people born in 1960 or later, the full retirement age (FRA) is 67. That means if you wait until 67 to claim benefits, you get your “full” amount.

But the FRA has been rising over time: in 2025, for example, someone born in 1959 hits an FRA of 66 years and 10 months.

The change has been gradual so far; more like little tweaks over decades. But now more aggressive proposals are on the table.

If you’re saving for retirement or already in your 40s or 50s, you need to understand these shifts now. The earlier you prepare, the less you’ll have to scramble later. One of the easiest first steps? Park your emergency savings in a high-yield savings account paying 4.00% APY or higher — check the best current rates here.

What “increasing the retirement age” proposals look like

Here are some of the ideas being floated:

One proposal would raise the FRA by three months per year starting in 2026 through 2033, pushing the FRA toward 69.Other variants scale it back — e.g. one month every two years — but still push beyond 67 for younger generations.Some proposals also shift the delayed retirement credit window (i.e. how much you gain by waiting past FRA) upward.

None of this is law yet. In fact, the Social Security commissioner recently clarified that raising the retirement age is not currently under active consideration. Still, the fact people are talking about it deserves your attention.

Who would be affected, and how much

If the FRA climbs to 69 over time, many people born in the 1970s and later could see meaningful reductions in their benefits, unless they delay claiming or save more.

Here’s what shifts might mean:

Claim at 62 (the earliest age now) and you’d face steeper penalties vs. today’s rules.Waiting until FRA gives you “full” benefits, but if FRA is higher, that just delays your start.Delaying past FRA to, say, age 70 (or beyond under new proposals) yields extra boosts, but that window might narrow or shift.Younger workers who expect FRA to stay 67 may underestimate how much they need to save.

Also important: People in physically demanding jobs or with health issues might struggle to work longer. An extra two years can feel very different in those careers.

If the FRA climbs to 69, taking benefits at 62 could mean a check that’s hundreds of dollars smaller every month. That’s why I always tell people to diversify — Social Security alone won’t cut it. A high-earning CD or high-yield savings account can help you bridge the gap and keep your plan on track. Check out the best CD rates now to look in a top rate on your cash for up to five years (and sometimes longer).

Why is this on the table?

Social Security faces financial pressure. Its trust fund is projected to run out in the early 2030s, which could force cuts to monthly benefits.

Raising the retirement age is one lever to reduce payouts, but it can’t solve the entire shortfall. Some estimates show it could close a significant portion of the funding gap, but only when combined with tax changes or benefit tweaks.

Politically, it’s contentious. No one likes the idea of working longer. And many advocates argue that lifetime outcomes differ by income and health. So a blanket age hike risks being unfair to lower-wage workers.

Don’t wait for Congress

If I were advising a reader, I’d recommend modeling a scenario where your FRA is 69 — and see how much extra you’d need to save each year to fill the gap. Use that as your baseline buffer.

If you’re under 50, assume your FRA might move higher, and plan accordingly. Social Security should be a supplement, not your only strategy. The smartest move you can make is putting your money somewhere it grows faster than inflation.