Understand the impact of retirement age on Social Security and Medicare.

The ages between 62 and 70 matter, regarding Medicare and Social Security, all of these ages are crucial.

These demographics are central to the heated argument about stabilizing large entitlement programs’ finances.

Nikki Haley, a Republican presidential contender, has recently focused on increasing the retirement age for Individuals in their twenties, arguing that it should be adjusted to reflect Americans’ longer life expectancies. In a similar vein, Republican Representative Joe Wilson also took this stance.

South Carolina Senator Nancy Mace spoke on CNN’s “State of the Union” last week. Neither of them proposed a new retirement age.

Because 65 has traditionally been considered the retirement age, many believe that’s when people can begin receiving their full Social Security benefits. But, as part of its 1983 entitlement program reform, Congress eliminated such restrictions.

Legislators progressively raised the retirement age, with those turning 65 in 2003 being the first to feel the impact. The benefit eligibility age for Individuals born in 1960 or later is 67.

Unfortunately, neither Social Security nor Medicare will be able to pay out their full benefits within the next decade or so unless Congress takes action.

According to projections made by the Social Security trustees last year, the program’s retirement and disability trust funds will be exhausted in 2035, at which point revenue would barely cover 80% of promised payouts. The most up-to-date projection from the Congressional Budget Office places the year of retirement trust fund exhaustion at 2032.


Part A of Medicare’s hospital insurance trust fund is expected to deplete its assets by 2028. If it waits until then to pay benefits, it will only pay 90% of them, and the CBO estimated that year to be 2033.

Both programs are under significant strain as a result of the retirement of baby boomers. Population aging in the United States means fewer employees contributing to the programs and sustaining a growing number of recipients.

Over 66 million people get monthly Social Security income due to retirement, disability, or the death of a worker, spouse, or dependent. Many seniors rely heavily on these payments as their primary source of income once they’ve retired.

As for Medicare recipients, there are currently over 65 million eligible seniors and persons with disabilities enrolled in the program.

Most proposals to raise the retirement age center on the age at which people should begin receiving their full benefits. However, some also propose raising the age at which people are eligible for early retirement and Medicare.

The argument behind this position is that since people in the United States live longer, they should be able to keep their jobs longer. Some people argue that those who work physically demanding occupations should be able to retire sooner than the legal age.

Retiring later is an essential topic in both the United States and Europe. Strikes and protests have erupted across France for weeks in response to the government’s controversial motions to raise the age that people can retire from 62 to 64.

Check out this info about retirement age norms in the US!

When American citizens reach 62, they can apply for Social Security benefits. But, doing so will reduce payouts permanently. If one’s full retirement age is 67 but files for benefits at 62, they will receive just 70% of the payment.

Raising the full retirement age could result in a steeper benefit reduction depending on the proposal’s specifics.

In 1956, Congress allowed women to begin collecting a reduced payment at age 62, and in 1961, it permitted males to do the same.

The number of people requesting early retirement benefits has decreased. As reported by the American Academy of Actuaries’ 2021 Social Security Administration statistics analysis, only 25% of eligible individuals choose to get a benefit increase, down from 52% in 2005.

Medicare eligibility is attained at age 65. 

Part A covers inpatient stays in hospitals and skilled nursing facilities, hospice, and specific home health care. Part B covers outpatient treatment, including doctor visits, medical supplies, and preventative services.

Those eligible can sign up for Medicare three months before their 65th birthday and continue through the end of the month when they turn 65. Individuals who hesitate to enroll may incur penalties or coverage gaps if they do so later.

As reported by the academy, the average age of a Social Security beneficiary recipient in 2021 was 65, or 65.1.

Age 67 is the minimum qualifying age for full Social Security benefits for Individuals born in 1960 or later.

Reforms often aim to lower this age, while raising it to 70 for future retirees is also possible. Munnell estimates this would eliminate almost one-third of the Social Security trust fund’s deficit over the next 75 years.

According to Linda Stone, a senior pension fellow at the academy, the average life expectancy has increased by nearly six years since the inception of Social Security in 1935. A rise in the full retirement age would help align it with these changes.

Social Security benefits are increased by a credit introduced by Congress in 1972 for those who delay retirement until age 70.

For workers born in 1960, receiving 124% of their pension if they wait to enroll until age 70 is an example.

The Social Security Administration advises people to file for benefits when they reach age 70, even if they are still employed because waiting past that age will not improve their monthly payouts.

Although the percentage of people who put off receiving their Social Security benefits is rising, it is still low. The rate of retirees taking benefits beyond the traditional retirement age increased from 5% in 2005 to 21% in 2021.