The retirement age in the Social Security system in the United States has been changed several times since its creation; on all occasions it has been increased. The program was established in 1935 and the retirement age had been set at 65, a threshold that remained unchanged for many decades until it was necessary to modify it.
The first adjustment occurred with the Social Security Amendments Act of 1983, during the Ronald Reagan administration. This law established a gradual increase in the full retirement age (FRA) from 65 to 67 years. Although it did not pass without criticism and controversy, it was approved and was designed to address the aging of the population and the increase in life expectancy of Americans that had been happening and being documented. The transition began in 2000, initially affecting those born in 1938 and later, and will culminate with those born in 1960 or later.
Waiting for Social Security — Is the Retirement Age Being Raised in the United States?
As we have said, the main reason for these increases has been the need to ensure the solvency of the Social Security program and all its long-term initiatives. The fact is that the American population has been aging and the relationship between active workers who pay social security taxes and beneficiaries collecting them has been gradually unbalancing.
In addition, as you already know, the money that you contribute on Social Security taxes from your payroll is not exactly “your money”, but it is intended to pay the beneficiaries currently covered by social security initiatives. When you retire, your payments will come from the taxes that are currently contributing workers in activity.
Grant Cardone Predicts What the New Retirement Age Will Be in the US
Currently, you can start receiving Social Security benefits starting at age 62, but with reduced checks compared to if you wait a little longer and start claiming them between the ages of 66 and 67, as retirement and savings advisors recommend.
However, Grant Cardone, a private equity fund manager and real estate investor, believes that this age is likely to increase significantly very soon, and predicts that future retirees will have to wait even longer.
According to Cardone, the current situation of the social security program is shaky and it is believed that the reserve of the trust funds of this federal program will begin to be insufficient from the year 2035. From that terrible “day zero” the checks and bank deposits to the beneficiaries should be reduced and the age from which the new beneficiaries will be able to claim benefits should be increased.
A Triad of Circumstances That Put Social Security at Risk, and No One Plans to Fix It
In other words, not only are Social security resources running out, but people are also living longer every day, in addition to which fewer and fewer people are working in a dependent relationship with an employer and contributing their Social Security taxes.
At the political level, President Joe Biden has done little or nothing to address this situation, and after abandoning his presidential campaign on July 21, now the Democratic Party faces the predicament of defining who will succeed Biden.
On the other side of the fighting ring, former president and Republican candidate Donald Trump has also not expressed his intentions to repair the budget holes that are forming in the Social Security quilt. Even when he was president, Trump sent budgets that already suggested cuts to both Social Security and Medicaid, which augurs an unflattering future for these federal benefit programs.
