Social Security is not in the best financial shape. In the coming years, as baby boomers exit the workforce in droves, the program will see its payroll tax revenue shrink. That’s a problem, since that’s Social Security’s primary means of funding.
Social Security can tap its trust funds in the coming years to make sure it can keep up with scheduled benefits as its payroll-tax revenue declines. But once those trust funds run dry, benefit cuts may be on the table.
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Lawmakers are trying to avoid that, though, since it would cause a major hardship for current and future beneficiaries alike. And they’ve proposed different solutions designed to help keep Social Security solvent.
One such solution is to push back full retirement age, or FRA, from 67 to 68 or 69 for younger workers. FRA is when Social Security recipients can claim their monthly benefits in full.
The idea of a postponed FRA may not sit well with a lot of people initially. But here’s why it’s not such a bad thing.
Motivation to keep working
Many seniors inevitably end up approaching retirement with limited savings. And that’s a bad thing because retiring mostly on Social Security alone could make for a pretty cash-strapped existence.
The upside of postponing FRA beyond age 67 is that it might push more workers to extend their careers. And doing so might allow them to build more savings before tendering their resignations. Just as importantly, working a few extra years means getting to leave existing savings untapped for longer.
But it’s not just financial benefits to be gleaned from working longer. There can also be social and mental health benefits.
Many seniors find retirement to be an isolating and, therefore, difficult period of life. And it can be very jarring to go from a full-time work schedule to no schedule at all. Working longer puts off that adjustment and gives those nearing retirement more opportunity to ease into that change.
For example, someone who can’t afford to retire without Social Security might opt to work until age 69 instead of 67 if that’s their new FRA. But they might also choose to scale down their hours during that time rather than go from a 40-hour workweek to no work at all. That phased transition could be a much better way to approach retirement.
A change that’s by no means set in stone
Although lawmakers need to do something to address Social Security’s impending financial shortfall, pushing back FRA isn’t their only option. Lawmakers could instead raise the Social Security tax rate or impose taxes on higher incomes.
Right now, there’s a wage cap that cuts off Social Security taxes at a certain income limit. Lawmakers could raise that cap or eliminate it altogether so that all wages, no matter how high, are taxed for Social Security purposes.
But postponing FRA could actually benefit workers, even if that idea might seem like it’s apt to do the opposite at first. And for this reason, it’s not such an outlandish proposal.
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Here is why this would be a disaster and discriminate against blue collar workers. Sure if you have a cushy office job you could work to 70. If you could find a job usually 55 starts the kiss of death in corporate America. Most blue collar jobs this is a complete impossibility. My father was a brick and block mason his entire adult life after the Marines. He hit his mid fifties and it became impossible to lay hundreds of 150 pound block a day. He nearly killed himself trying. My uncle was a welder for 30 years until he couldn’t meet the precision tests any more as he aged. Most construction jobs the heavy lifting alone someone just can’t do at 67. These hardworking men get left with no job options except for a walmart greeter.
I agree with you. Sadly, then there are Federal, state, and local retirees that get wonderful retirements courtesy of the rest of us. Retirement equity means lowering the retirement age, not raising it. We citizens put huge amounts of money into those retirement packages yet we don’t even get the proverbial gold watch.
Also lowering the Age for ‘Socialized’ Medicine would also help delay Retirement.
No reputable “politician’ is advocating rolling back the Retirement age, the Reputable ones are advocating for elimination of the FICA Tax Cap for the Upper 0.5%.
P.S. There are no “cushy” office jobs any longer. Retirment has been shunted onto 401Ks and IRAs.
Once again, the 99% are Shafted!
5 Co workers who immigrated to Canada told me their parents made them 2 years older than their actual age. Imagine they will get two years of old age security before me.
That’s over twenty thousand thanks to Canadian taxpayers. Maybe Canada should look at giving old age security at seventy to immigrants from countries where government records can easily be forged or non existent. Instead of making Canadians with legit paper work pay for corrupt immigrants
Absolutely agree! One reason we have such a shortage of craftsmen is because it’s a job most people can’t work much beyond age 55-60. That leaves them vulnerable to unemployment (and uninsured) for about 10 years. Another problem is that health and life insurance premiums for blue collar workers…especially in the building trades…is not affordable. Instead of spending on Medicaid for welfare, the government should spend it on supplementing insurance premiums for people whose jobs put them more at risk and let all labor-intensive blue collar workers start drawing full social security and Medicare at age 62.
But there are other negatives to extending retirement age as well. While we have a worker shortage now, that has never been the case before in my lifetime. The longer older people work, the fewer jobs are available for young people. The solution is for companies to stop requiring bachelors degrees for jobs where training and talent is sufficient, and instead create an apprentice phase in/retiree phase out program requiring an associates degree in a related field plus company-sponsored apprentice program.
Linda Jackson, underscoring your very well stated and important point, and extending it further: There may be any number of people who can no longer hold a cushy office job or even work as a Walmart greeter, when they get to their fifties, sixties and seventies. Any number of health conditions can make working impossible and can cause disability. Vertigo, strokes, immune disorders, vision problems, cancer, pain states (back pain *Can be* extremely severe in certain cases), who knows what else, this is far from any complete list…at all! Unfortunately, the doctors are known for saying “it is part of getting older” To have health problems…a well known fact…right? So it is very brash and cavalier of the authors here, and our politicians, to assert that work life can just be extended. Meanwhile, war funding (murder with a paycheck) continues unabated, it sure isn’t going broke, is it? What about the national debt? Regardless of anybody’s position or beliefs about war et al, all this is to say that our hard-earned tax dollars are being misappropriated, while social security is *allowed* to go broke! Unacceptable. Which leads to the next and very important question: Is this a way our government is trying to get rid of the bill for sustaining our elderly people, under guise of “it won’t hurt anybody to work until their later years” ? Beyond unacceptable, this is criminal and even, in its own way, an act of violence against the frail and medically vulnerable elderly population. Above and way beyond merely unacceptable.
lets get real here FOOLS… THE ‘lawmakers’ U refer to ARE the GOP extremists who REFUSE to raise the SSI CAP from 140000/yr to PROTECT their WEALTHY donors. instead their age old mantra is to CUT or DELAY the working class their due benefits while the rich get richer. IF you’re a low/mid income worker in this country & vote for GOP — you are shooting yourself in the economic foot.
You are exactly right. They tried to privatize SS in 2012 when Romney and Ryan ran for office and the American people rejected it. I’m 65 now and they better not move the goal post when I am this close to retirement. I think what is more likely going to happen if the GOP takes total control is they will refuse to raise the cap and they will cut benefits which is just as bad if not worse. For most people SS is a large part of their retirement.
Who are the 6 Nays?? ‘republiecons’
That is simply old marxist/communist demagoguery. It’s no longer persuasive.
The Dems were in total control Biden’s first year. What did they do about it.. what? What? Did I hear you say “they didn’t do squat?.
Privatized Social Security = far above and beyond grand theft. The politicians might as well carry the banner, openly, stating “Social Security, No Dime Left Behind”. (As in, no child left behind, and no senior left behind…from being rendered out of timely access to social security…right?)
How about truck drivers, airline pilots, as the above replied, those who do heavy lifting or work. Not everyone sits behind a computer screen. Would you like your surgeon to be 70 before retiring. Some could be great. Some might not.
Hi, Bobbie: Yes, my environmental dentist did not give up his practice until he was most of 80 and THAT meant he could not see as well to do the excellent job he used to do. He was a great man, but I definitely think he needed to give the practice up about 8-10 years earlier!
About waiting until 70 or so to get your Social Security benefits, I believe this is one of the reasons that Big Pharma and hospitals got away with injuring and killing so many older folks. The government simply did not want to pay back the Social Security benefits these hard-working people had paid for! They figured “they’re living too long, so let’s just kill them off!” AT least that’s what it looked like to me. If you read any of the articles about the “Pfizer Documents” that were mandated to be released (ie. research documentation) you will see that they killed people and sterilized them ON PURPOSE! No kidding. Look up articles online or go to Naomi Wolf’s website that details this in depth: theClout.com I think it is. You will be astounded to see proof from Pfizer themselves that THEY KNEW what would happen to these people who were vaxxed, as did the CDC, who then passed the info. on to Biden’s Desk. The result? The very next day, Biden et al. put out ANOTHER big push to get everyone vaxxed!!!
The FDA Knows that Pfizer’s mRNA Injections are Gene Editing Technologies
By falsely referring to injectable gene editing technologies as ‘vaccines’, Pfizer, the FDA and the NIH knowingly lied to the American people and global civilians. Make no mistake, this is criminal.
KAREN KINGSTON
JAN 5, 2024
January 5, 2024: On January 3rd, Surgeon General Ladapo called for the stop of the use of COVID-19 mRNA ‘vaccine’ injections in human beings due to their potential to integrate foreign DNA into the human genome. Per the documents Pfizer submitted to the FDA, as well as the FDA’s and NIH’s own definitions of gene editing technologies, the FDA absolutely knew that Pfizer’s mRNA injections are gene editing technologies and not vaccines.
Pfizer and Government Documents Confirm that the FDA and NIH Knew the mRNA Injections are Gene Editing Technologies and NOT Vaccines
Its funny that those who have a non-technicial precision skilled or physically demanding job are trying to sell the reason why raising the FRA might be a good thing. First of all, being forced to work an extra year is not going to raise your monthly benefit that much that is will be a life changing financial decision. Secondly, you can already work passed FRA and work until age 70 and receive 108% of your FRA. Thirdly, retirement is isloation? Give me break, I don’t need to be forced to work a few more years to receive my FRA because I might feel lonely.
Those people who proposed, support this and the person who wrote this article and beleives this is a good idea should continue to work as long as they choose but don’t take away the benefits earned for us who want to be enjoying retirmeent by traveling, sleeping in etc after working 25 or 40 years of our lives and are in our 60’s and good health trying to enjoy live. NOT WORK OURSLEVES TO DEATH!.
It isn’t just the GOP, look at all the Dems in the House and Senate who collect their pay check while their aids do all their voting. Ruth Bader was probably dead on a ventilator long before her heart gave out, Dianne F died while still on the job. Fetterman and Biden aren’t fit for office, Mitch needs to go home and enjoy all the millions he stole while in Congress. When Congress men and women become millionaires while in office something is wrong. TERM LIMITS.
What about the invaders on your southern border Americans? They are getting a loaded debit card on entry with over $2,200 a month free medicare NO forced jabs and a plane flight or bus ticket to where ever they want. You guys not whining and complaining are perfect SUCKERS to the Biden economics. Russia Russia the enemy is within and giving YOUR money to Ukraine while your homeless and retirees suffer. YOU as a country of cowards and brain dead CNN watchers will get what you deserve. All of you low IQ know nothing morons that allow the destruction of our once wonderful country. Shamefull people and communist creeps from both side of congress raping and pillaging your money and coffers. Soon you will default on your debt and bring in the cashless society so they can control your money. You dumb shits will wake up too late and say ” What happened ” and the educated think for themselves people will say ” I knew it would happen” Kick those demonrats and RINO’s out and the warmongers who are making money on the side with YOUR money and killing ukrainians pure genocide YOU are paying for NATO terrorists and ZIONIST controlled country dual citizenship with Israel should not be allowed especially in your state dept. Too many of your finest have died for their wars. Dumb shit Americans and your keep them dumbed down gov and media
Man – you’ve got hat right !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
What about the invaders on your southern border Americans? They are getting a loaded debit card on entry with over $2,200 a month free medicare NO forced jabs and a plane flight or bus ticket to where ever they want. You guys not whining and complaining are perfect SUCKERS to the Biden economics. Russia Russia the enemy is within and giving YOUR money to Ukraine while your homeless and retirees suffer. YOU as a country of cowards and brain dead CNN watchers will get what you deserve. All of you low IQ know nothing morons that allow the destruction of our once wonderful country. Shamefull people and communist creeps from both side of congress raping and pillaging your money and coffers. Soon you will default on your debt and bring in the cashless society so they can control your money. You dumb shits will wake up too late and say ” What happened ” and the educated think for themselves people will say ” I knew it would happen” Kick those demonrats and RINO’s out and the warmongers who are making money on the side with YOUR money and killing ukrainians pure genocide YOU are paying for NATO terrorists and ZIONIST controlled country dual citizenship with Israel should not be allowed especially in your state dept. Too many of your finest have died for their wars. Dumb shit Americans and your keep them dumbed down gov and media All by design and has been since WW2 when you sided with the commies and they won the war for you
F****** r*******!!!
I agree with the others who point out that a lot of people’s bodies are gonna wear out way before that. Also, good luck to ANYONE over 55 trying to look for a decent job. And think you’ll ride it out where you’re working now? Nope, your seniority and higher pay will make you a target when it’s time to downsize. Social Security is not an “entitlement”– it is something people have paid into all their lives. It would have been fine if Reagan didn’t decide to dip into it. (It’s true, go google.) And they have been dipping into it ever since. Do you know how many old people are ekeing out a dismal existence on below-poverty-level social security income? And now they want to cut it, or screw people out of it? Every pension in congress should be eliminated before anyone touches social security.
This article ridiculously attempts to sell further cuts in retirement benefits as being a good thing. I had to quit an excellent job last year ( I am 64 years old) because it was to physically demanding for me to do the work I had done for decades.
Go screw yourself along with every three letter agency , every duel citizenship holder in congress (Israeli pukes)…..
Myself i think they need to take a few billion of the monies they squander on Illegal immigrants, Foreign Aid and all of the idiotic things they piss it away on and use it make SS and Medicare healthy again, Heaven forbid they used some of it to heip American Citizens…………………………..
Once the Republican Party is destroyed in 2024 and the Democrats are free to do whatever they want to do, Social Security will be chanced to a ‘Defined Contribution’ program, just like your 401K. You’ll be given the option to invest your Social Security money in a variety of mutual funds, run by Blackrock. When you retire, you’ll get an Annuity, managed by Blackrock.
Same reason the private sector no longer has ‘Defined Benefit’ pension plans, you will not have a ‘Defined Benefit’ Retirement plan. It’s not rocket sciene.
Tie retirement to an apprentice program. Most retirees want to just work less, not quit. Instead of retirement being a one and done, it should be a phase-out process where one declares his or her intent to initiate retirement 1-2 years in advance. That gives time to start looking for an applicant to hire as an apprentice to the pending retiree (who should be invested the search and selection process). For example, by a certain age (e.g., by 55 for manual labor, such as stone masons or by 63-64 for an editor or a bookkeeper), the mentor/retiree must declare their intent to enter the phase-out retiree program. Apprenticeships could apply as early as a high school seniors or up to 30 years old. The first year, the apprentice works one day a week and attends related classes (only) at a community college or university. The retiree works full time the first year. Every year thereafter, the apprentice works more and more hours and the retiree works fewer and fewer for the next four years. Health benefits belong to the retiree until they work less than 30 hours, then Medicare should kick in. (But Medicare needs to start kicking in by age 60 for blue-collar laborers with physically demanding jobs).
Employers should be incentivized with the same grant dollars for training as now going to schools. Employers should receive a reimbursement payout when the apprentice reaches a 24-hours work week and can pass a state developed proficiency exam for that field. Training reimbursement requirements should include a contract to minimally employ the trainee full time for 2 years at a minimal rate of pay for that field. The trainee should also agree to work two years or pay a fine.p fir breach if contract. That way, if they are good and they stay, the employee and employer benefits; and even if they leave, the apprentice will have both training and experience. And society benefits by blocking the sick indoctrination and entitlement caused by woke madness in university graduates and training kids early to a work environment so they are assets instead if mentally ill liabilities.
The age should be lowered but due to the inability of our government to live honestly within its means and not piss away all the money collected in the name of retirement investing it as it came in to produce a great retirement program. Instead, it was thrown away on being the world policeman and supporting fruitless love America programs.
Social Security is a Marxist scheme. We pay money into it and don’t get anything out of it. On top of that, it is going bankrupt, as all Marxist schemes do. The idea that all workers should have to pay over 15% of their earned income into a plan that they get pennies out of, if anything, just doesn’t make any sense.
The authors of this article, writing that delayed retirement is not such a bad thing, show no sympathy or any thought at all for people whose health may (perhaps even somewhat typically) lag during middle-to-older ages of their lives. This bodes a potential for disaster, an increase of elderly ill people, whose retirement funding has been exhausted, on the street and dying from cold/rain/snow exposure…while waiting for their hard-earned Social Security income? It’s time to stop taking advantage of people to the death, and instead tax the wealthy! Plus, our right to life itself is constitutionally guaranteed. The 14th amendment says: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.” Need any more be said? Must we pay for this act of treason against our own selves and our own people? This is not permissible,under the law itself. Law”makers” please take note and follow the laws of our founding fathers!
The government has to stop squandering and misappropriating our hard earned tax dollars. Social Security should Never be allowed to go broke, or it is not Security. That this is now happening, is a very poor reflection on our politicians. I propose a new law, in which all US citizens are notified and have access to Federal, State and Local budget in proposals, voting for the spending of our own hard-earned tax dollars, and not relying on politicians to make fiscal decisions.