New Social Security Age Rule Raises Full Benefit Age to 66 Years, 10 Months for 1958-59 Birth Cohorts

Several legislative proposals and recent changes are impacting Social Security benefits and retirement policies in the United States. Americans born in 1958 and 1959 are reaching their full retirement age (FRA) this year, which currently stands at 66 years and 8-10 months, allowing them to claim higher benefits if they wait until the FRA. House Republicans have introduced tax legislation that largely leaves retirement policies unchanged but includes expansions to savings accounts and tax deductions for seniors, while also proposing tax cuts on Social Security payments for low- and middle-income seniors. Meanwhile, Democratic lawmakers have introduced the Social Security and Medicare Fair Share Act, aiming to extend the solvency of these programs by imposing payroll taxes on earnings above $400,000, addressing funding shortfalls projected by 2035. Another significant proposal, the Social Security Expansion Act, seeks to increase benefits by $2,400 annually for the average beneficiary and extend the program's solvency by applying payroll taxes to incomes above $250,000. These efforts reflect ongoing bipartisan concerns about the financial future of Social Security amid demographic and economic changes.