Understanding the Proposed Social Security Retirement Age Increase to 70

Juilia Ruskin
4 Min Read

In recent months, many older Americans have been worried about the future of Social Security. New proposals, potential payment cuts, and a possible shortfall in funds are causing concern. One major change could be raising the retirement age to 70. This proposal, suggested by Rachel Greszler, a senior research fellow at the Roe Institute, could impact millions of future retirees.

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Proposed Changes to Retirement Age

Rachel Greszler, from the Roe Institute, believes that raising the retirement age to 70 would help the Social Security Administration (SSA) avoid a financial crisis. Currently, the full retirement age (FRA) is 67 for those born after 1960. This is the age when you can collect full Social Security benefits. However, with life expectancy increasing, Greszler thinks it’s necessary to raise this age to ensure the system’s stability.

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The Impact on Retirees

If the retirement age is raised to 70, it means that future retirees will have to work longer before they can receive full Social Security benefits. This change aims to keep the Social Security trust funds solvent. According to the SSA’s 2023 Trustees Report, if no action is taken, these funds will run out of money by 2035.

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The Benefits of Working Longer

Greszler argues that there are benefits to older people working longer. With better health care and less physically demanding jobs, older workers can continue to contribute to the workforce.

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This also benefits younger workers who can learn from the experience and mentorship of older colleagues. Additionally, continuing to work can provide financial stability and help reduce the SSA’s deficit.

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Raising the Retirement Age Alone Is Not Enough

While raising the retirement age is a step towards preserving Social Security, it’s not enough. Inflation adjustments are also necessary to address the program’s deficits. According to financial expert Stephen Kates, simply raising the eligibility age could lead to a reduction in monthly income by about 30%. Therefore, a combination of raising the retirement age and adjusting for inflation is needed to ensure the program’s long-term stability.

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Raising the retirement age is a significant change that could help ensure the financial stability of Social Security. However, it’s not the only solution. A combination of raising the retirement age and making inflation adjustments is necessary to address the program’s deficits. These changes will impact future retirees, requiring them to work longer before receiving benefits, but they also offer opportunities for financial stability and mentorship in the workforce.

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1. What is the current full retirement age (FRA) for Social Security?

The current FRA is 67 for those born after 1960. This is the age when you can collect full Social Security benefits.

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2. Why is there a proposal to raise the retirement age to 70?

The proposal aims to address the financial shortfall facing the Social Security Administration by extending the time people work and contribute to the system.

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3. How will raising the retirement age affect future retirees?

Future retirees will need to work longer before receiving full Social Security benefits, which could mean a later start date for benefits and potentially reduced monthly income.

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4. What other measures are being suggested to preserve Social Security?

In addition to raising the retirement age, there are suggestions to make more accurate inflation adjustments to help reduce the program’s deficits.

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5. Why is working longer beneficial for older workers and the economy?

Older workers provide valuable experience and mentorship to younger workers. Continuing to work also offers financial stability for older workers and helps reduce the SSA’s deficit.

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An up-and-coming tax attorney passionate about educating readers on tax planning and mitigation strategies. Juilia articles offer practical advice and actionable tips to help individuals and businesses navigate the intricacies of tax law with confidence.
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