Rachel Greszler from the Roe Institute has suggested increasing the full retirement age to 70. This means that Americans would need to work longer before they can start receiving Social Security benefits. The main aim of this change is to address the financial challenges that Social Security is facing.
Why Raise the Age?
The Social Security Administration (SSA) predicts that Social Security funds might run out by 2035 if no changes are made. By raising the retirement age, the SSA hopes to save money and extend the program’s lifespan.
Impact on Retired Workers
Current Retirement Ages
Currently, the full retirement age (FRA) in the US is 67 for people born after 1960. People can start collecting benefits at 62, but the monthly amount is lower. If the proposal is accepted, the FRA would be pushed to 70.
How Will It Affect Benefits?
With a higher retirement age, people will have to wait longer to receive their full benefits. This change is expected to help fix Social Security’s financial problems. However, some experts, like Stephen Kates from RetireGuide.com, worry it might lead to reduced monthly income for future retirees.
Other Considerations
Inflation Adjustments
Simply raising the retirement age won’t completely solve Social Security’s issues. Adjusting benefits for inflation is also important to help reduce the program’s financial shortfall.
Benefits of Working Longer
Working longer has its perks. Older workers bring valuable experience to their jobs. With better health care and less physically demanding work, many older adults can continue working and ease into retirement gradually.
Financial Stability
The proposal to raise the retirement age aims to make Social Security more financially stable. Without changes, benefits might be reduced in the future. Raising the retirement age and adjusting for inflation are steps to help prevent this.
Raising the full retirement age to 70 is a significant change designed to keep Social Security financially stable. Although it means waiting longer for benefits, it may help ensure the program continues to support retirees. For personalized advice, it’s a good idea to consult with a financial advisor.
What is the proposed change to the retirement age?
The proposal suggests raising the full retirement age to 70 to help address Social Security’s financial issues.
Why is there a need to raise the retirement age?
The Social Security Administration predicts funds could run out by 2035. Raising the age aims to extend the program’s financial stability.
How will raising the retirement age affect current retirees?
Current retirees are not directly affected, but future retirees will have to wait longer to receive full benefits.
Will this change affect my Social Security benefits?
Yes, you will need to wait longer to receive full benefits, which could affect the amount you get if the age is increased.
Are there any other changes proposed along with raising the retirement age?
Yes, adjustments for inflation are also suggested to help reduce Social Security’s financial shortfall.