In recent years, large numbers of older people have expressed their misgivings and justified concern about what is coming for Social Security, and well, their anguish is totally understandable.
Citing new ideas, possible decreases in payments and even a possible funding crisis, a new retirement age is expected to be implemented in the United States, so it seems that everything is about to change for seniors, according to the latest reports.
The proposal that is on the table is from experts and, if approved, it would take another year of waiting for the large group of future retirees to begin receiving their Social Security payments.
There is a possibility of avoiding the bankruptcy of the Security Social and, at the same time, that there is an increase in payroll and income tax revenues through gradual increases in the early retirement age, 62 years, the full retirement age, 67 years and the age of late retirement, 70 years old, these increases would be the result of longer and more intense work hours.
New Proposal to Raise Retirement Age
Despite being one of the most successful programs in the United States, Social Security faces long-term financial complications as its expenses grow faster than its income, although living longer is generally a good thing, despite As the baby boomer generation retires over the next 20 years, Social Security will face larger expenses as a result of this trend.
As each generation of retirees is financed with current workers who expect to receive their own benefits upon retirement, Social Security is especially a sharing system, the more money Social Security receives in contributions, the more money it takes to provide benefits, professions that are physically demanding and workers with poor payments have a lower life expectancy than the average, so raising the retirement age could work so that there are disproportionate reductions in benefits for them.
Raising the Social Security retirement age will minimize benefits by thousands of dollars each year.
In March, the Republican RSC Study Committee released its budget proposal for next year’s fiscal year, which included significant cuts to Social Security, committee members are about 80% of all Republican lawmakers in the U.S. House of Representatives, as well as the entire House Republican leadership, indicating that the policies outlined in his budget proposal are important priorities for the House Republican bloc.
One policy that has been consistently included in CSR budget proposals for years is an increase in the Social Security Full Retirement Age (FRA), the age at which older adults can count on access to benefits. Social Security retirement benefits without being financially penalized for retiring early, the FRA is 67 under the law today.
Will You Have to Work Longer?
But the RSC plan would push it back to 69, leading to drastic benefit cuts For a large portion of the United States citizens, while the rise of the FRA is overwhelmingly unpopular among American citizens, it has enjoyed the support of certain more extreme far-right groups in Washington DC, including the Heritage Foundation, which heads the authoritarian manual that is now known as Project 2025.
Fortunately, Rep. Cline’s comments provided some additional information, stating that the FRA would increase three months per year, starting with those who turn 62 in 2026, until it increases two years and goes from 67 to 69, then the new age 69 FRA would be fully implemented for those who turn 62 in 2033, taking into account that the language of this proposal has remained the same from year to year, possibly this schedule will simply be delayed by one year with the fiscal year 2025 version.
This means that the gradual implementation would begin with those who turn 62 in 2027 and end with those who turn 62 in 2034.