Other Republicans tacitly support the cuts. If the investment fund didnt generate a certain amount of return, the plan would increase the tax cap for Social Security and the tax rate itself. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. A $1000 retirement benefit He was hostile to the idea of raising the retirement age. Other provisions address programs such as Medicare and federal disability insurance. Social Security Retirement Age More from Personal Finance:Retirees' biggest fear is outliving their assets, research findsSocial Security may be key issue for GOP presidential rivalsThis tool lets you play at fixing Social Security woes. Just 6.5% of new Social Security recipients are 70 or older. Image source: Getty Images. However, other reports predict funds could be depleted by 2032 after accounting for rising inflation and cost of living rates, according to the Congressional Budget Office. We value your privacy. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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, Full Retirement and Age 62 Benefit By Year Of Birth. They reflect an ongoing political debate, driven mostly by Republicans, over long-term federal spending. Full details on the CTC are available here. It has to be transparent, it has to be out in the open. The potential proposal from the group led by King and Cassidy is among several options circulating in Washington. All Rights Reserved. We have hours left to raise the $12,000 we still need to keep Truthout whole. Filing for Social Security at age 70 could end up being a smart move, but it's important to understand the risks involved. At the time the 1983 changes were enacted, the program was projected to be solvent to 2057, she noted. Anything that involves raising the retirement age is a benefit cut, and its particularly pernicious because it hurts the vulnerable, Munnell said. (Its a different idea from former President George W. Bushs call for private accounts in the early 2000s.). 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. In 1983, a commission led by Alan Greenspan, who would later serve as Federal Reserve chairman, issued a report that served as a basis for Social Security legislation. While commissions, task forces and special committees have fallen out of favor in recent years, the process was "fairly successful" under Greenspan, he said. 4 GIGO Principles for Capturing Lost Sales, Why $100B of Wealth Moved to the Southeast, Honoring Advisors Who Serve(d): Fourth of July, 2023. 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. Planning a fireworks display? She has a masters degree in environmental studies. Social Security retirement age reaches 67. Some say it may go Site by, An aging population will challenge the U.S. economy: PBS, Expected retirement age, average savings have increased, study shows, More seniors, concerned about recession, move to sell homes: survey, More Americans fear going broke than dying: survey, Nearly 30% of households need to reassess retirement income needs, People want to retire early, but arent saving enough to do it: survey, Commentary: Why HECM Saver should be revived, Senior-held home equity falls to $11.62 trillion in Q1 2023, Programming Note: Happy Independence Day from RMD, Kristin Broadley on the reverse mortgage industrys potential, CFPB: A sharp increase for reverse mortgage complaints in 2022. House GOP Budget Framework Sets 70 as Full Social Security We have hours left to raise the $12,000 we still need to keep Truthout whole. Sky News Sharon Zhang is a news writer at Truthout covering politics, climate and labor. 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When Congress first created Social Security retirement insurance in the 1930s, lawmakers set the eligibility age for maximum benefits at 65. The purpose of COLAs is to help seniors retain their buying power when inflation strikes. Take a Financial Relief Quiz. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Nevertheless, the senators are talking to each other about changes to the way Social Security benefits are calculated, plus increasing the amount of payroll income that is subject to the taxes that fund benefits. But doing so could be risky in two regards. By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. It might be that you're downsized out of a job or your health renders you unable to hold down a full-time job. In a bipartisan reform Congress approved in 1983, the full retirement age gradually increased to 67 over a 22-year period that started in 2000. The only reason to have a commission is to hide the cuts you want. Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site. Senate Social Security could be reshaped as bipartisan group of senators considers increasing age requirement by Cami Mondeaux, Congressional Reporter | February At CPAC, Trump thrashed the idea by saying the program should be left alone. benefits at age 70 results in a 24% benefit increase. Despite providing essential services, wages and benefits for these workers lag far behind those of other city workers. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. "The largest single-employer strike in American history now appears inevitable," said the unions general president. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Organizers are urging the White House to use executive powers to enact broad-based student debt cancellation. Raising the retirement age would be highly controversial and Congress is not likely to do so anytime soon. Sen. Ron Wyden (D-Ore), who is chairman of the Senate Finance Committee, which oversees Social Security, and who is not participating in the informal talks, said he was open to ideas for new policies on top of existing benefits. You may be planning to file for Social Security at age 70 to snag the highest monthly benefit possible. A group of Republican senators, plus one independent who caucuses with Democrats, is working on a plan to slash Social Security benefits by potentially raising the age at which people receive full benefits by several years which would essentially force millions of workers to work even longer than into typical retirement age. 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. Left entirely to their own devices, it is unlikely that people of modest and lower means would or could effectively purchase private income insurance. To make the world smarter, happier, and richer. But you cant tap equity you dont have. Negotiations over the plan have been in the works for nearly two years. You may be planning to file for Social Security at age 70 to snag the highest monthly benefit possible. The current retirement age for Social Security is 67 years old for anyone who was born after 1960, according to amendments that were made to the program during Ronald Reagan's presidency. Increasing Social Security Full Retirement Age to 70 - Yahoo Finance It is unlikely that Congress would approve any changes to Social Security or Medicare this year; House Speaker Kevin McCarthy (R-Calif.) has said the House wont touch the programs. Failure to generate a return of 8% would cause both maximum taxable income and the payroll tax rate to increase, which would aim to put the Social Security trust fund on solvent ground for the next 75 years. RMD is owned byHW Media. Student Loan Forgiveness Was Just Struck Down. That estimate was recently revised downward from other estimates that speculated benefit reductions would occur in 2035. 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.. 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. Americans are counting on Social Security but are not confident about its future. Read more on I am 70 years old and earned my social security for over 50 ye The RSC said its proposal would balance the federal budget in seven years by cutting some $16 trillion in So for workers born in 1960 or later, the full retirement age is 67. December 12, 2022 at 12:29 PM Listen to free podcasts to get the info you need to solve business challenges! Privatizing Social Security would disproportionately impact people of color and low-income earners, research shows. COLAs have been minimal over the past number of years. lawmakers Social Security news: Bipartisan group of senators There's no "final age" by which to sign up, so you can file as late as you want. Social Security's trust funds face depletion dates in the next decade, which may mean reduced benefits if nothing is done sooner. You are also agreeing to our Terms of Service and Privacy Policy. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. Get matched with an Authorized Partner. Angus King (I-ME) and Bill Cassidy (R-LA) are working toward revising the Social Security framework amid concerns the program's trust fund will become insolvent within the next decade, spokespeople for the senators told the Washington Examiner. Photo (c) Catherine Falls Commercial - Getty ImagesThe Social Security Administration (SSA) says it has good and bad news for consumers to start 2022. A bipartisan group that is led by two U.S. senators Angus King (I) and Bill Cassidy (R) is reportedly considering a plan that would : Lawmakers consider plan to raise Social Securitys full retirement Sen. Tim Kaine (D-Va.), one of the Democrats involved in the discussions, brushed off questions about a higher retirement age. The basic idea, sometimes described as a sovereign wealth fund or a social wealth fund, is that the government would invest payroll tax income into the stock market, instead of Treasury bills as it currently does, in order to bring in a higher return. [emailprotected] However,it also noted that it would be the last year that a change to the retirement age would occur unless action is taken by Congress. MarketWatchs Robert Schroeder contributed to this report. All other uses, submit a request to 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. Republicans Are Working on Making 70 the New Social The proposal would also include a sovereign wealth fund that could be seeded with $1.5 trillion in borrowed money as a way to impact stock investments, according to Semafor. "The only reason to have a commission is to hide the cuts you want," Altman said. Sens. And Treasurys are Treasurys.. The biggest of those is the Child Tax Credit (CTC), which was expanded last year to help families that are raising children. The SSA never promised that there wouldnt be any math involved, but there is. Raising the retirement age to 70 could save Social Security for us all Rocketnews uses news feeds from a variety on online news feed providers including Feedzilla, Yahoo, and the BBC. 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The agency reminds Social Security recipients that they may also be eligible for the Earned Income Tax Credit (EITC). The credit can be claimed by anyone who has a qualifying child, even if they dont usually file a federal tax return. As such, 70 is generally referred to as the latest age to claim Social Security, even though you can technically sign up later. But whether a bipartisan commission is the answer to Social Security's funding woes is the subject of fierce debate. What if Social Security Went Bust and Kept Paying Full Benefits? as important and affects as many millions of Americans as Social Security does, it has to be transparent, it has to be out in the open," Hoagland said. Angus King and Bill Cassidy, a Maine independent and a Republican from Louisiana, respectively, are leading a group of lawmakers in a proposal MarketWatch - Jessica Hall 1d Read more on marketwatch.com Social Security Money Bill Cassidy Retirement Finance Angus King and Bill Cassidy, a Maine independent and a Republican from Louisiana, respectively, are leading a group of lawmakers in a proposal to raise the full retirement age to around 70 from the current 67 and create a sovereign-wealth fund that would help fund Social Security, according to a media report. This especially holds true for those who don't have retirement savings to fall back on. "If it's going to survive into the next century, it has to be done in a bipartisan way," he said. Invest better with The Motley Fool. New research could help investors find their number. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Seven in ten student debtors say they either wont be able to make payments or will have to cut back spending. Key Points While many people hope to retire at 62, Social Security doesnt pay full benefits until as late as age 67. CORRECTION: An earlier version of this story incorrectly said Wyden was part of the bipartisan talks. But the CPI-W isn't centered on healthcare expenses. The coming year, however, is shaping up to be different. 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. Under a plan developed by the Republican Study Committee, a group of conservatives in the House, senior citizens would face a five-year delay to claim Medicare, the Think about someone who's been on Social Security since 1991. One nice thing about Social Security is that you get a choice when it comes to claiming benefits. Garys main beats for the ConsumerAffairs news team are travel and technology, including the hearing aid industry. Get alerted any time new stories match your search criteria. I should say that I do give the Republican Study Committee due credit for putting together a specific framework, Altman added.
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