House Republicans last week proposed increasing the full retirement age (FRA) to collect Social Security to 69, in a controversial move that may come back to bite conservatives as Democrats look to gear up for the 2024 election.
The Republican Study Committee (RSC), which includes 176 out of the 222 Republican members in the House of Representatives, making it the largest group of House conservatives, proposed the change as part of a budget package that it says would limit $16.3 trillion in spending and $5.1 trillion in taxes in the next seven years.
This isn’t the first time the RSC has attempted to raise retirement ages for seniors. In 2022, the group made a proposal to raise the retirement age for Medicare from its current 65. While the proposal has since been dropped, the current blueprint includes a “premium support” plan that would support privatization of Medicare programs.
While the current FRA is 66, it gradually increases each month until it reaches age 67. The RSC proposal would include a slower change at four months a year, eventually reaching age 69 for those who turn 62 in 2033. The earliest full retirement age would remain at 62 but would include the lowest benefits.
The plan would continue former President Donald Trump’s tax cut plan for wealthy households and corporations, which is currently set to expire in 2027, eliminate the estate tax, and would gradually raise military from $886 billion in 2024 to $969 billion in 2023, among other proposals.
In response to the budget package, lawmakers and officials have accused House Republicans of once again attempting to abolish Social Security and Medicare programs. In a statement, Senate Finance Committee Chair Ron Wyden, D-OR, said the plan is “proof that Republicans are committed as ever to cutting Medicare and Medicaid while allowing Social Security to wither.”
White House Press Secretary Karine Jean-Pierre added in a statement that the proposed budget counters “…exactly what Republicans in Congress pledged not to do just months ago at the President’s State of the Union Address.”
Earlier this year, President Joe Biden accused House Republicans of wanting to sunset federal programs including Medicare and Social Security during the State of the Union address, to which Republicans and Speaker of the House Kevin McCarthy (R-CA) disagreed. After a back-and-forth between both parties, Biden eventually took the argument to mean that Republicans didn’t want to make cuts.
“So folks, as we all apparently agree, Social Security and Medicare is off the books now?” That brought the audience to its feet in applause. “All right—we got unanimity,” he said.
The proposed budget solidifies Social Security and Medicare as two main themes set to appear during the 2024 election cycle, one that will likely serve as fuel for Democrats—and some Republicans—to call out opponents on. Trump, who has already announced his campaign for presidency, has previously attacked competitor and Florida Gov. Ron DeSantis for his past support on a GOP budget proposal that would restructure Social Security and Medicare benefits.
Editor’s Note: An earlier version of this article included the term “retirement age.” We’ve since updated that to “full retirement age” or “FRA” for added clarity.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
Absurd. We are wildly overspending on defense with no accountability. Giving super wealthy tax breaks while forcing the poor and middle class to work until death. Pathetic.
From The HIll, 12/4/21: “IRS data proves Trump tax cuts benefited middle, working-class Americans most”
“What’s more, IRS data shows earners in higher income brackets contributed a bigger slice of the total income tax revenue pie following the passage of the tax reform law than they had in the previous year.
In fact, every income bracket with filers earning $200,000 or more increased its tax burden in 2018 compared to 2017, and every income bracket with a top limit lower than $200,000 paid a smaller proportion of the total personal tax revenue collected.
That means that Republicans’ tax reform law resulted in the tax code becoming slightly more progressive — the exact opposite of what Democrats have claimed over the past four years.”
Saying “The plan would continue former President Donald Trump’s tax cut plan for wealthy households and corporations” isn’t true and is clearly biased, and there is no need to add political bias to an article for financial professionals. The author clearly has an agenda, and this is why Americans don’t trust the press.
Thats an opinion piece written by Haskins who is co writer of the conspiracy book The Great Reset with Glen Beck. Yea, that’s not biased .
The top 25% of earners paid almost 89% of all income ta x in 2020. ——-source, National Taxpayers Union Foundation
How is that fair?
Should have stated in the article FRA – Full Retirement Age. The increase in the FRA does not mean you cannot claim at 62. Very misleading article, but you were successful in the click bait.
Let’s be a little more accurate in the reporting: “The earliest retirement age would remain at 62 but would include the lowest benefits”. This already exists today for those claiming SS at 62. Someone turning 62 in or after 2022 and claiming early SS, will see their payments reduced by 30%. SS benefits for someone who turned 62 in 2021 and claimed early were reduced 29.17%. So this is nothing new!!
This is an irresponsible article, from the title, to the picture, all of it.
If no changes are made, Social Security will die. This proposal increases the retirement age for those that are nowhere near retirement. The Democrats quoted in this article are lying, and it’s interesting no Republicans are quoted at all.
This is an effort to SAVE Social Security, not end it.