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Increasing the Social Security Full Retirement Age (FRA) adversely affects all workers because an increase is equivalent to an across-the-board cut in benefits. Raising the FRA leaves workers with two bad choices: working longer or living on reduced monthly benefits for the rest of their lives. Working longer further penalizes Blacks and low-wage workers because they are unlikely to live long enough to recoup payments foregone as a result of delayed claiming. Instead of cutting Social Security benefits, retirement policy makers should update and modernize the 401(k) and IRA systems to provide workers with better options.

The Inequitable Effects of Raising the Retirement Age on Blacks and Low-Wage Workers