Why Raising the Full Retirement Age Won’t Save Social Security
Social Security solvency is a major concern. If nothing is done to shore up the trust fund, benefits will be cut by about 20 percent. According to Yahoo!Finance, one idea to avert insolvency is to raise the full retirement age (FRA) to 69. However, the Congressional Budget Office (CBO) says that gradually raising FRA by two years, from its current age of 67 for people born in 1960 or later, would provide retirees with less money over their lifetime.
The article states that raising the FRA would “reduce spending for Social Security, in terms of dollars spent and as a percentage of gross domestic product (GDP).” However, it would be rather insignificant. It cites that the change “would reduce the 75-year actuarial deficit of the program measured in relation to GDP by 24 percent, from 1.5. percent to 1 percent.”
Additionally, the CBO pointed out that “gradually raising the full retirement age would not change the projection that the trust funds that back Social Security would be exhausted in 2034.” And that is ultimately what we are trying to avoid.
A Better Budget Booster
The Seniors Trust believes the best way to save Social Security is to enact the Social Security Expansion Act. This landmark bill buttresses the long-term solvency of Social Security by expanding benefits for seniors — not cutting them!
When passed, this legislation will require the wealthiest Americans to pay their fair share. This legislation would lift the income tax cap and subject all income above $250,000 to additional Social Security payroll tax. Under this bill, more than 93 percent of households would not see their taxes increase by one penny.
It would also expand Social Security benefits by $200 per month across the board. Retirees would not need to hold off until full retirement age to achieve bigger benefits.
If you agree that this is a viable means of solving Social Security’s solvency issues, please show your support by signing our petition to Congress and join us as we work to improve the lives of senior citizens.
