lawmakers consider raising social security age to 70

Social Security news: Bipartisan group of senators Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Thetax credits are available even if someone receives Supplemental Security Income (SSI) but doesn't normally file a tax return. Perhaps the most salient point illustrating Republicans and conservatives disinterest in saving Social Security, however, is the fact that the other solution to Social Security solvency increasing the amount of money going in to the program, rather than decreasing the amount going out seems to be off the table for much of the party. The idea of forming a commission to look at Social Security is not new. Elizabeth Warren, a Massachusetts Democrat, and Bernie Sanders, a Vermont independent who like King caucuses with the Democrats, seeks to shore up Social Security by raising the top rate of income tax by a third, and the top rate of capital-gains tax by more than a half. Americans are counting on Social Security but are not confident about its future. CORRECTION: An earlier version of this story incorrectly said Wyden was part of the bipartisan talks. Some lawmakers have called for increasing the Social Security retirement age in response to the This is a proposal to reduce Social Security benefits, Altman said. Raise Social Securitys full retirement age to 70. The case could threaten not only the existence of the CFPB, but also programs like Medicare. 1. Does Paying Off Student Loans Early Make Sense? The benefit will be reduced by 5/9 of one percent (or 1/180) for every month before a recipient reaches full retirement age, up to three years. Based on recent inflation data, the nonpartisan Senior Citizens League is estimating that seniors could be in line for a whopping 6.1% COLA in 2022. Such extreme investor rights under an international trade agreement directly oppose Honduran sovereignty, says critic. But the CPI-W isn't centered on healthcare expenses. At Age 62 3. At the time the 1983 changes were enacted, the program was projected to be solvent to 2057, she noted. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. While we don't yet have third-quarter data from the CPI-W, based on recent months' data, it's fair to assume that next year's Social Security COLA will, in fact, be substantial. She has a masters degree in environmental studies. Raising the retirement age to 70 could save Social Security for us all Other Republicans tacitly support the cuts. Garys main beats for the ConsumerAffairs news team are travel and technology, including the hearing aid industry. Lawmakers want to raise Social Security age to 70 The Currently, income over about $160,000 a year isnt subject to the Social Security tax. As of this year, only a workers first $160,200 in earnings are subject to the 12.4% tax shared by workers and employers. "You don't want Social Security to become a partisan issue," said Bill Hoagland, senior vice president at the Bipartisan Policy Center. A spouses benefit wouldalso bereduced by 35%. FRA is 67 if you were born in 1960 or later. Student Loan Forgiveness Was Just Struck Down. Here's how to stay safe. At CPAC, Trump thrashed the idea by saying the program should be left alone. Photo (c) Catherine Falls Commercial - Getty ImagesThe Social Security Administration (SSA) says it has good and bad news for consumers to start 2022. When the voters were asked whether they would support the creation of a commission that would be "tasked with cutting some forms of government spending, including Social Security and Medicare," 72% of respondents said they opposed the move. Months between age 62 and full retirement age 2. COLAs have been minimal over the past number of years. Customer Success Story: Bill Pay Used to Be Something to Be Avoided, Now It Is Something to Be Marketed, Customer Success Story: JFS Wealth Advisors Adds More Client Value, Creates Efficiency and Continues Compliance, 100 Ways to Grow Your Wealth Management Firm. We want to hear from you. In a new commentary, a group of industry professionals advocates for the return of the discontinued HECM Saver program. The SSA never promised that there wouldnt be any math involved, but there is. Increasing Social Security Full Retirement Age to 70 - Yahoo Finance Here Are Some Other Debt Forgiveness Options. All other uses, submit a request to 4 GIGO Principles for Capturing Lost Sales, Why $100B of Wealth Moved to the Southeast, Honoring Advisors Who Serve(d): Fourth of July, 2023. Other changes could be gradually phased in to protect current and near retirees from dramatic changes, he said, while protecting low-income people who are dependent on Social Security. In January, Reps. Tom Cole, R-Okla., and Jake LaTurner, R-Kan., reintroduced a bill titled the Bipartisan Social Security Commission Act that calls for the formation of a bipartisan commission that would provide recommendations for improving the program. That's because those benefits are subject to annual raises, or cost-of-living adjustments (COLAs). Lawmakers want to raise Social Security age to 70 By Pioneer Press | news@pioneerpress.com PUBLISHED: July 10, 2010 at 11:01 p.m. | UPDATED: November 12, 2015 at 5:21 a.m. If consumers begin withdrawing benefitsmore than three years (or 36 months) before full retirement age, then benefits are reduced by 5/12 of one percent (or 1/240) each month. All rights reserved. And one item under discussion is raising the eligibility age for Social Security benefits for future retirees a politically fraught move that is more likely to enrage voters than it is to become law in the near term. The purported plan also includes a proposed sovereign-wealth fund that could be funded with $1.5 trillion or more in borrowed money, according to Semafor. Along with potentially increasing the eligibility age for future retirees, the group has looked at creating an investment fund that would improve Social Securitys long-term finances. Despite 2023s big COLA, Social Security recipients still struggle to keep up. This especially holds true for those who don't have retirement savings to fall back on. You may decide that you'll work as long as you need to in order to claim Social Security at age 70. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to email a link to a friend (Opens in new window), Click to share on SMS (Opens in new window), 2006-2023 HW Media, LLC. 1. That's because those benefits are subject to annual raises, or But doing so could be risky in two regards. Democrats have proposed legislation to expand the program by making benefits more generous while raising taxes on higher earners. The Social Security trust fund is going insolvent in 11 years. Maine Independent Sen. Angus King and Sen. Bill Cassidy, a Republican from Louisiana, are leading a group of lawmakers in a proposal to raise the full retirement age to But what if you end up having to leave the workforce at a younger age? Cost of living - latest updates: Huge drop in UK house prices predicted; energy bills to fall by hundreds tomorrow. Maine Independent Sen. Angus King and Sen. Bill Cassidy, a Republican from Louisiana, are leading a group of lawmakers in a proposal to raise the full retirement age to I also take issue with the part of the proposal that suggests people could just go into the market and buy private income insurance.. Were counting on you to support our work in this critical moment. In the end, Altman said, it will be up to voters to decide what approach they prefer. As Richtman noted, Congressional Democrats have introduced legislation that would extend the solvency of the Social Security trust fund by asking high earners to begin paying more into the system, without benefit cuts. But whether a bipartisan commission is the answer to Social Security's funding woes is the subject of fierce debate. WASHINGTON A bipartisan group of senators has been talking about ways to reform Social Security in order to avert a funding shortfall expected sometime around a decade from now. Request academic re-use from Making the world smarter, happier, and richer. According to a media report, the potential proposal calls for creating a sovereign-wealth fund and changes to ways benefits are calculated. Among options being considered are changing the way Social Security calculates monthly benefits to reflect the number of years spent working and paying into Social Security, rather than the existing formula that calculates benefits, Article Attribution | Read More at Article Source. What if Social Security Went Bust and Kept Paying Full Benefits? Not increase Social Securitys tax rate. Anything that involves raising the retirement age is a benefit cut, and its particularly pernicious because it hurts the vulnerable, Munnell said. The group is formulating a bill to slash Social Security, and raising the Social Security retirement age to 70 is a serious consideration. Social Security This is an example of two leaders trying to find a solution to a clear and foreseeable danger, the senators spokespeople told Semafor in a statement. Copyright 2023 MarketWatch, Inc. All rights reserved. If they wait until age 70, they stand to get an 8% per year benefit increase over their full retirement age. Invest better with The Motley Fool. House GOP Budget Framework Sets 70 as Full Social Security Filing for Social Security at age 70 could end up being a smart move, but it's important to understand the risks involved. Visit a quote page and your recently viewed tickers will be displayed here. 1 Important Fact All Student Loan Borrowers Need to Know, 77% of Warren Buffett's $366 Billion Portfolio Is Invested in Only 6 Stocks. A new commission could be structured in a way that allows for the consideration of amendments after a it comes up with a proposal. Specifically, under the proposal, the full retirement age would climb at a rate of three months per year until it is increased by three years for those reaching age 62 in 2040.. While the Greenspan Commission put forth changes to restore the program's solvency in 1983, similar changes, such as raising the retirement age, would be inappropriate For more information visit The one Im focused on is this investment fund, because thats one that hasnt been done yet in Social Security but I think has real promise.. Key Points While many people hope to retire at 62, Social Security doesnt pay full benefits until as late as age 67. Additionally, the senators are eyeing a change to the programs formula that calculates monthly benefits, transforming it from a system that disburses funds based on ones average earnings to base rewards on how many years the applicant made Social Security payments throughout his or her career instead. The results found 67% of those surveyed would be less likely to vote for their member, 15% would be more likely to support them and 18% said it would not impact their decision. By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. Key Points Social Security reached the 87th anniversary of the programs enactment this month. The Social Security Retirement Age The proposals come as the Social Security Administration has warned lawmakers that its trust fund reserves could exhaust its resources if Congress doesnt make changes to the scheduled benefits and resources program. Many American seniors are dependent on Social Security benefits, and they often interact with the reverse mortgage business as a result. A coverage ratio gives retirees more control over their risk, researchers say. Or you might have to move due to personal circumstances and struggle to find a full-time job in your new location. While the recent surge in consumer prices will hopefully be temporary in nature, some experts warn that we could be looking at higher living costs for a solid eight to 10 months. Do you have information you want to share with HuffPost? In 2016, 46% of homeowners age[s] 65 to 79 still had mortgage debt, according to Harvard Universitys Joint Center for Housing Studies. Although the final framework is still taking shape, there are no cuts for Americans currently receiving Social Security benefits in our plan. Last year, the Republican Study Committee the largest Republican group in the House, with over 150 members and significant sway over the partys agenda released a plan that would increase the eligibility age for Social Security and Medicare.
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