Other ideas being floated
In addition to previously mentioned proposals, there are almost countless other ideas for avoiding steep benefit cuts—but many would involve cutting benefits in some form.
Among the most commonly cited:
• Raising the retirement age from 67 to 70. Currently Americans can take early benefits at 62, but the full retirement age is 66 or 67, depending on the month and year of birth. The Republican Study Committee budget, put forward by House leaders, has called for Social Security’s full retirement age to gradually go up until it is increased by three years. Based on their proposal, people born in 1978 or later would have a full retirement age of 70.
• Raising the payroll tax percentage. Currently, employers and employees each pay a tax of 6.2% of wages, and raising those rates could have a big impact on the program’s solvency. One proposal mentions raising the tax by 0.1% over the course of 20 years to 7.2% of wages.
• Means-test benefits. The concept is to protect people below a certain annual income or wage level so they get full benefits while those who are financially healthier would sacrifice some or all of their Social Security payments.
SEE ALSO:
• Bernie Sanders Reintroduces Bill to Increase Social Security Benefits, Extend Solvency
• Social Security Trust Fund Projected to be Depleted in a Decade
• Latest Bill Pushes for Increased Social Security Earnings Limit
• 4 Senators Want Americans to Wait Until 70 to Claim Social Security
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
You keep saying the wealthy pay a less percentage than the waitress. But you don’t point out that the wealthy’s S.S. payment is capped at a maximum like everyone else. If you make 200k a year or 2 million a year, you don’t get any more increase in benefit. The benefit is based on that capped taxable amount of $160k. This is FAIR. Unless you see S.S. as a welfare plan – which of course Bernie & Pocahontas do!
As someone concerned about the future of Social Security, I believe that implementing gradual increases in the retirement age is a crucial step towards fixing the system. After reading the article “3 Proposals to Fix Social Security,” it became clear to me that adjusting the retirement age is a practical solution to ensure the program’s long-term sustainability.
Considering the rising life expectancies and changing demographics, it is necessary to make adjustments that align with the current reality. By gradually raising the retirement age, we can address the challenges posed by an aging population and ensure that Social Security remains viable for future generations.
This proposal recognizes the significant improvements in healthcare and overall quality of life that have resulted in longer, healthier lives for many individuals. It acknowledges that people are now able to work and contribute to society for more extended periods. Adjusting the retirement age would reflect these societal changes and distribute the financial burden more evenly.