US Considers Raising Social Security Retirement Age Beyond 67 Amid Funding Shortfalls

The U.S. government is considering raising the full Social Security retirement age beyond 67 to address the program's projected insolvency by 2033, with proposals potentially increasing early retirement penalties and delaying full benefits for younger workers. This move reflects demographic challenges, including longer life expectancy and fewer workers per retiree, which strain the Social Security trust fund. Meanwhile, President Trump's administration faces criticism for policies, including import tariffs and staff reductions at the Bureau of Labor Statistics, which could suppress Social Security benefit increases amid rising living costs for elders. Additionally, new tax legislation signed by President Trump in 2024 introduces significant changes such as increased deductions for seniors and new exemptions, affecting tax filings for 2025. Older workers will also face changes in retirement savings rules in 2026, with higher earners required to make catch-up 401(k) contributions with after-tax dollars, reducing a key tax advantage. Companies are urged to audit nonqualified deferred compensation plans before year-end to avoid costly tax penalties related to Section 409A violations.