Why Raising the Retirement Age Won’t Solve the Social Security Solvency Issue
Social Security is facing a solvency issue. Rather than raise taxes, one suggested solution is to raise the retirement age. According to CNBC, the full retirement age (FRA) for Social Security, when workers are eligible for 100 percent of the benefits they’ve earned, is transitioning to 67. The article reports that Republican Study Committee budget, put forward by House leaders, calls for Social Security’s full retirement age to gradually increase by three years, pushing FRA to age 70 (for people born in 1978 or later). It’s important to note that the proposed change would not apply to current Social Security beneficiaries or people ages 55 and over.
The Seniors Trust believes a better solution is the Social Security Expansion Act. This proposed legislation would fully fund Social Security for the next 75 years without raising taxes on households making less than $250,000. Even better, if enacted it would expand Social Security benefits by $2400 per year.