Investor Insights Blog|Congress Considers Raising the Retirement Age – How to Protect Yourself
News and Trends
If recent discussion in Washington becomes reality, some of the retirement income you’re counting on could arrive later than you think. But regardless of whether that happens, it may be a good idea to start creating your own safety net to ensure you’re financially prepared in your retirement years.
In March, members of the U.S. House of Representatives unveiled a proposal to increase the Social Security retirement age. Currently, Social Security beneficiaries can begin to claim 100 percent of their benefits when they reach age 67.
Proponents of delaying retirement payouts cite two main reasons:
People are living longer – The average life expectancy of those born in 1960 is three years longer than those born in 1928. Since Social Security payments continue until the beneficiary’s death, the number of payments has increased over the years.
Reduced Social Security fund – As it stands now, the fund that covers Social Security benefits will be able to provide full benefits up until 2033. After that, just 77 percent of benefits will be payable.
Those who oppose the move say raising the retirement age would cut the overall amount of benefits seniors receive and disproportionately affect disadvantaged population groups.
On top of waiting longer for Social Security payments, some retirees have a lack of retirement savings to fall back on. As more and more Americans reach age 65, one in four don’t have anything saved for retirement.
Those who have managed to put money away for retirement aren’t without worry. About 53 percent of Americans in this age range have $250,000, and 40 percent of baby boomers worry that they will outlive their savings, according to a recent study.
The report also found that the median retiree’s retirement account balance is four times less than what’s recommended.
[Related: The Great Retirement Savings Plan Crisis]
The future of retirement support in the United States remains unknown: Will the retirement age rise? Will Social Security funding continue to support retiring Americans for years to come?
Instead of waiting to find out, there are steps you can take now to ensure you’re ready for whatever happens in retirement. Ultimately, you should talk to your financial professional to discuss what’s best for you, but here are some potential actions to take:
The key to any plan is starting now. Starting to invest and save just five years earlier can have a significant impact in the long run, with compounding interest coming into play.
For example: Let’s say you contribute $5,000 to an IRA each year, beginning in 2024. Assuming you received a 5-percent annual return, in 2044, you would have nearly $181,000. On the other hand, if you waited five years until 2029 to contribute $5,000, you would have just over $119,000 in 2044.
To recap:
Contributing to a retirement account with investments
Assuming 5% annual return:
Contributing $5,000 per year for 15 years = $119,000
Contributing $5,000 per year for 20 years = $181,000
Difference: $62,000
After compounding interest, you could have $62,000 more in your account if you had started saving five years sooner.
In his recent blog post and video (below), Equity Trust Head of Education John Bowens dives deeper into why it’s important to take control of your financial future.
Video: The Retirement Planning Crisis and What We Can Do About It
1 Equity WayWestlake, OH 44145
Terms of UsePrivacy PolicySite Map
© 2026 Equity Trust®. All rights reserved.
Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional. Equity Institutional services institutional clients of Equity Trust Company. Brokerage Services Available Through ETC Brokerage Services, Member SIPC, and FINRA. *Founded in 1974 | Self-Directed IRA Custodian since 1983. The predecessor business to Equity Trust Company was established in 1974 and the IRS approved as a custodian in 1983. **Assets under custody and administration as of 03/31/2026.
Terms of UsePrivacy PolicySite Map
© 2026 Equity Trust®. All rights reserved.
Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional. Equity Institutional services institutional clients of Equity Trust Company. Brokerage Services Available Through ETC Brokerage Services, Member SIPC, and FINRA. *Founded in 1974 | Self-Directed IRA Custodian since 1983. The predecessor business to Equity Trust Company was established in 1974 and the IRS approved as a custodian in 1983. **Assets under custody and administration as of 03/31/2026.
You are leaving trustetc.com to enter the ETC Brokerage Services (Member FINRA/SIPC) website (etcbrokerage.com), the registered broker-dealer affiliate of Equity Trust Company. ETC Brokerage Services provides access to brokerage and investment products which ARE NOT FDIC insured. ETC Brokerage does not provide investment advice or recommendations as to any investment. All investments are selected and made solely by self-directed account owners.
Continue
