In recent months, handfuls of seniors have expressed concern about what is coming for Social Security, arguing new ideas, possible decreases in payments and even a possible funding crisis, a new retirement age is expected to be applied in the United States, so it seems that everything is about to change for older people, 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.
Change in Retirement Age in the United States
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.
Because each generation of retirees is funded by current workers who expect to receive their own benefits upon retirement, Social Security is especially a pay-as-you-go system; the more money Social Security receives in contributions, the more money it takes to provide benefits, the professions it They are physically demanding and low-paid workers have a lower than average life expectancy, so raising the retirement age could lead to disproportionate reductions in benefits for them.
A certain age may also be out of reach for some employees in physically severe jobs, however, to counteract these impacts, certain measures can be taken, such as variations to disability regulations, that will provide assistance to some employees who become incapacitated. to perform their tasks after a certain age.
Getting to know Social Security Retirement Age
In 1983, Congress passed a law that progressively increased the retirement age to be a beneficiary of all Social Security benefits. Early retirement benefits will continue to be available at age 62, but will be reduced even further. .
Most of the reforms are carried out progressively, according to one plan, the FRA can raise it by one month every two years to reflect the increased life expectancy of United States citizens, another suggests increasing Security benefits Social in a gradual way, but in a more drastic way, to decrease even more future expenses.
Regardless of how it’s implemented, raising the full Social Security retirement age makes sense, given that reduces program expenses to ease the financial burden on future generations and aligns with extending the life expectancy of Americans.
What About the Full Retirement Age, as of Today?
The “Full Retirement Age” (FRA), refers to the age at which workers can begin receiving Social Security retirement benefits without payment cutbacks. Currently, the full retirement age varies depending on the individual’s year of birth. For example, for those born in 1960 or later, the full retirement age is 67.
However, those born before 1960 have a lower full retirement age, which can be as early as 66, depending on the specific year of birth. Opting to receive benefits before reaching full retirement age may result in a reduction in monthly payments, while delaying applying for benefits may increase the monthly amount received, depending on each person’s financial situation and individual needs.