### Social Security Faces Changes Amid Looming Insolvency

A new analysis reveals that raising the full retirement age for Social Security beneficiaries to 69 years old would cut lifetime benefits for individuals and reduce overall program spending, but it would not prevent the program's expected insolvency by 2034. The Congressional Budget Office (CBO) shared these findings in response to Democratic Rep. Brendan Boyle's inquiries.

Under the proposed policy, while the earliest age to claim Social Security would stay at 62, the age for receiving maximum benefits would increase from 70 to 72. This shift is intended to address the financial pressure on the Social Security program. For instance, for those born in 1972, claiming benefits at 62 would result in a 40% reduction, a significant increase from the current 30% reduction.

The gradual implementation of this policy means that for workers born in 1965, the full retirement age would be 67 years and three months, increasing by three months each year, to reach 69 for those born in 1972 or later. As a result, average benefits for workers in this cohort who retire at 65 would be 13% less than under the current law.

Despite these adjustments, the CBO indicates that the proposed changes would not significantly alter the insolvency projection, with the Social Security trust funds still expected to be exhausted by 2034. This is partly because new Social Security beneficiaries, who would be affected by the change, only account for about 5% of total spending.

Experts, such as Henry Aaron from the Brookings Institution and Richard Johnson from the Urban Institute, note that the full impact of raising the retirement age wouldn't be felt until after the projected insolvency date. Consequently, more comprehensive measures may be required to address the long-term financial health of the Social Security program.