In 1935, Congress set the minimum age for getting full social security benefits at age 65. So, why is it going up? A variety of reasons contributed to the increase, but it all has to do with the Social Security Act of 1983.

The Social Security Act of 1983

The Social Security Act of 1983 increased the full retirement age for people born in 1938 or later. However, according to the Social Security Administration, the change will occur gradually over 22 years. Individuals born in 1960 or later will feel the full effect and will not reach full retirement age until age 67.

Improvements in Health

According to the Social Security Administration, when the Act was passed, Congress cited increased improvements in health among older Americans as one of the reasons for the change. With modern improvements in medicine, people are often able to work longer than they were before.

Longevity

People are living longer. Since Social Security first began paying benefits in 1940, the average life expectancy for both men and women has increased. Men typically live 4 years longer, and women usually live 6 years longer than they did in 1940.

Early Retirement

Although the full retirement age has been 65 since 1935, the Social Security Administration says people are not waiting that long to retire. In 1998, the average age of retirement for both men and women was 64. Approximately 69 percent of Americans retire before they reach full retirement age.

Minimum Age for Retirement

Although the Social Security Act of 1983 does increase the full retirement age to 67, it does not increase the minimum retirement age. Individuals wishing to retire early will still be able to obtain partial social security retirement benefits as early as age 62.

Source:

Social Security Administration: The Full Retirement Age Is Increasing

Social Security Administration: Increase in Retirement Age

Tax Guide for Investors: Overview of Social Security Retirement