The proposal would also include a sovereign wealth fund that could be seeded with $1.5 trillion in borrowed money as a way to impact stock investments, according to Semafor. Or you might have to move due to personal circumstances and struggle to find a full-time job in your new location. In that case, your homes equity could be helpful. Here Are Some Other Debt Forgiveness Options. The proposal is part of the Blueprint to Save America,a proposed federal government budget framework put together by the Republican Study Committee. Rather, it's influenced by fluctuations in the cost of things like gasoline, which seniors may spend some money on, but not to the same extent as workers. COLAs are based on third-quarter inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Well start sending you the news you need delivered straight to you. Garys main beats for the ConsumerAffairs news team are travel and technology, including the hearing aid industry. "Raising revenue from the very wealthy not only is good policy, but I think the American people recognize it's the right way to go," Altman said. We have hours left to raise the $12,000 we still need to keep Truthout whole. If the fund failed to generate an 8% return, both the maximum taxable income and the payroll-tax rate would be increased to ensure Social Security stays solvent for another 75 years. Private eyes may be watching you. But in both 2011 and 2016, seniors got no COLA at all. As such, 70 is generally referred to as the latest age to claim Social Security, even though you can technically sign up later. If that happens and you've been saving for retirement on your own all along, you're not necessarily in a terrible position. Organizers are urging the White House to use executive powers to enact broad-based student debt cancellation. Do you have information you want to share with HuffPost. As noted on the groups website, nearly 75% of current House Republicans are members of the Republican Study Committee. Bharat Ramamurti, the deputy director of the National Economic Council, who joined MarketWatchs Victor Reklaitis for a live Q&A session on Wednesday, said he had not seen the details of the senators proposed plan, but said increasing the retirement age is effectively a benefit cut.. As Richtman noted, during the midterm campaign, Rep. Steve Scalise, the third-ranking Republican in the House, said he approved of the Republican Study Committee plan. And the retirement age for Social Security would also increase to 70, compared with today's full retirement age of between 66 and 67 years old. Indeed, many will receive additional benefits, Cassidy and King spokesmen said in a joint statement provided to MarketWatch. Unsubscribe at any time. Heres how. A final plan has not yet been approved by the senators, and its not yet clear what solutions it may include. As an example, if a person decided to collect Social Security at age 62, then the benefit would be reduced by 30% on a monthly basis to the primary beneficiary. As the U.S. population grows older at a faster rate, a panel of experts examine the potential implications on the nations economy. Filing for Social Security at age 70 could end up being a smart move, but it's important to understand the risks involved. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. HW Media connects and informs decision makers across the housing economy. Looking forward, Richtman said, it is very likely that House Republicans, who will be in the majority next year, will use the GOP Study Committees blueprint as a roadmap for potential cuts to Social Security during debt ceiling negotiations including raising the full retirement age. Let's say you're entitled to a monthly benefit of $2,000 at an FRA of 67. It is unlikely that Congress would approve any changes to Social Security or Medicare this year; House Speaker Kevin McCarthy (R-Calif.) has said the House wont touch the programs. To make the world smarter, happier, and richer. That's because those benefits are subject to annual raises, or cost-of-living adjustments (COLAs). But doing so could be risky in two regards. The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission. It is very important to do your own analysis before making any investment based on your own personal circumstances and consult with your own investment, financial, tax and legal advisers. We value your privacy. Student Loan Forgiveness Was Just Struck Down. Enacting changes to the federal retirement program often is referred to as the third rail of politics because the issue is so politically charged. Raising the retirement age would be highly controversial and Congress is not likely to do so anytime soon. WASHINGTON Young Americans might not get full Social Security retirement benefits until they reach age 70 if some trial balloons that prominent lawmakers of both parties are floating become law. That's because those benefits are subject to annual raises, or Site by, An aging population will challenge the U.S. economy: PBS, Expected retirement age, average savings have increased, study shows, More seniors, concerned about recession, move to sell homes: survey, More Americans fear going broke than dying: survey, Nearly 30% of households need to reassess retirement income needs, People want to retire early, but arent saving enough to do it: survey, Commentary: Why HECM Saver should be revived, Senior-held home equity falls to $11.62 trillion in Q1 2023, Programming Note: Happy Independence Day from RMD, Kristin Broadley on the reverse mortgage industrys potential, CFPB: A sharp increase for reverse mortgage complaints in 2022. When the voters were asked whether they would support the creation of a commission that would be "tasked with cutting some forms of government spending, including Social Security and Medicare," 72% of respondents said they opposed the move. You can also delay your Social Security filing past FRA for a higher monthly benefit. Public pensions would have 16.6 percent lower emissions and be worth $21 billion more if they had divested a decade ago. A budget proposal published by Republican members of the U.S. House of Representatives calls for the raising of the full Social Security claiming age from 67 to 70. Photo (c) Catherine Falls Commercial - Getty ImagesThe Social Security Administration (SSA) says it has good and bad news for consumers to start 2022. Raising the retirement age to 70 without the early retirement option would permit men and women more time to save for their retirement as well as provide them with full rather Republicans favorite solutions for Social Securitys financing challenges demand that beneficiaries themselves bear the burden.. While the Greenspan Commission put forth changes to restore the program's solvency in 1983, similar changes, such as raising the retirement age, would be inappropriate That 'official' letter you got from Social Security? By entering your email and clicking Sign Up, you're agreeing to let us send you customized marketing messages about us and our advertising partners. The lawmakers claim that theyre looking at benefit cuts and reforms due to concern over the solvency of Social Security though Republicans have been clear that their intentions are to slash benefits and force people to depend on work to survive for even longer into old age. This is a proposal to reduce Social Security benefits, Altman said. Some lawmakers have called for increasing the Social Security retirement age in response to the 1, 2023, 10:55 AM. The purpose of COLAs is to help seniors retain their buying power when inflation strikes. When the index indicates that the cost of common goods is rising, Social Security benefits get a boost. Dont forget you can visit MyAlerts to manage your alerts at any time. Anything that involves raising the retirement age is a benefit cut, and its particularly pernicious because it hurts the vulnerable, Munnell said. All Rights Reserved. Share & Print. The proposal could emphasize a commonly cited use case for reverse mortgage loans. To donate by check, phone, bitcoin, or other method, see our, Trump Demanded Lawyers Get Docs Back Even as They Told Him Indictment Was Coming, Ocasio-Cortez: Student Debt Decision Shows SCOTUS Rulings Are Up for Sale, Right-Wing Think Tank, Walmart Heirs Behind Latest Attack on Arkansas Teachers, DeSantis Transferred $92 Million to Project Helping Developer Who Donated to Him, Truthout Center for Grassroots Journalism, Supreme Court Takes Up Case That Could Kill Consumer Finance Protection Agency, Advocates for Racial Equity on Campus Say SCOTUS Ruling Wont Deter Their Fight, Supreme Court Kills Student Debt Relief, 1 Day After Slashing Affirmative Action. Wages captured by Social Security taxes hit a record low in 2021 due to increasing inequality, a new analysis finds. And people in low-income or blue collar jobs would see their retirements cut the most, as those populations have a lower life expectancy, meaning that they would enjoy even fewer years of retirement. And. Some Republican lawmakers are reportedly considering raising the Social Security retirement age to 70. 3 min read Pekic / iStock.com Among the proposed changes to Social Security is to raise the full retirement age for recipients, which proponents In the end, Altman said, it will be up to voters to decide what approach they prefer. WASHINGTON A bipartisan group of senators has been talking about ways to reform Social Security in order to avert a funding shortfall expected sometime around a decade from now. Search Engine Watch past honorable mention winner for Best News Search Engine. The basic idea, sometimes described as a sovereign wealth fund or a social wealth fund, is that the government would invest payroll tax income into the stock market, instead of Treasury bills as it currently does, in order to bring in a higher return. Get daily news, in-depth reporting and critical analysis from the journalists, activists and thinkers who are working to improve our world.. 1. Does Paying Off Student Loans Early Make Sense? Part of those changes included a gradual increase of the full retirement age to 67 from 65. Why retirement savers need the Supreme Court to uphold the student-loan forgiveness plan, The unexpected group the Supreme Courts student-loan decision impacts, Dont become a landlord own these REITs instead. "If you look at the last four years, the Democrats have increased spending by 30%, $400 billion. But Nancy Altman, who was Greenspan's assistant when he led his commission, and who now serves as president of advocacy group Social Security Works, is opposed to that approach. Conservatives Won a Landslide. The credit can be claimed by anyone who has a qualifying child, even if they dont usually file a federal tax return. Perhaps the most salient point illustrating Republicans and conservatives disinterest in saving Social Security, however, is the fact that the other solution to Social Security solvency increasing the amount of money going in to the program, rather than decreasing the amount going out seems to be off the table for much of the party. Not only would that constitute their largest raise since 1983, but it would also surpass the 5.3% projection the Senior Citizens League put out a month ago. Key Points Social Security reached the 87th anniversary of the programs enactment this month. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. To make the world smarter, happier, and richer.
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lawmakers consider raising social security age to 70
