Retirement age could change as Social Security examines all options

With the Committee for a Responsible Federal Budget predicting that Social Security’s retirement trust funds will run out by 2032, policymakers are being forced to act fast.

When asked during Fox Business News‘s “Mornings with Maria” segment on Thursday whether the retirement age would change, Social Security Administration (SSA) Commissioner Frank Bisignano said “everything’s being considered” to stabilize the system.

Bisignano added that younger generations are likely to face “a different set of rules” than current retirees.

The Congressional Budget Office (CBO) projects that the population paying into and drawing from Social Security will rise from 342 million in 2024 to 383 million in 2054.

With fertility rates low, the CBO expects immigration to account for all population growth after 2040.

But Bisignano said raising the retirement age is not the only option. He pointed to adjustments to the $175,000 earnings cap for benefits and other measures under review.

If the trust funds run dry, federal law requires Social Security to cut benefits to match incoming payroll taxes, resulting in an average 24% reduction, according to the Committee for a Responsible Federal Budget.

The program’s trustees estimate that Congress would need to raise payroll taxes from 12.4% to 16.05% to close its 75-year funding gap.

Bisignano said officials are also considering raising the Social Security contribution cap.

“That number will continue to increase also, of where the max is, and that’s another thing that people put in the equation to think about,” he said. “Eight years is a long time away. We’re less than 200 days into this administration, and we need Congress to partner with us.”

In a Friday post on X, the SSA wrote that, “SSA Commissioner Bisignano is committed to protecting and preserving Social Security.

“SSA Commissioner Frank Bisignano said, ‘Let me be clear: President Trump and I will always protect, and never cut, Social Security. That’s why we have made many vital reforms, such as cutting waste, fraud, and abuse from the program, to ensure the solvency of Social Security for future generations of Americans. Raising the retirement age is not under consideration.'”

Editor’s note: This story was updated with the SSA’s social media statement.