The current times are greatly changing the shape of Social Security. The United States Congress is taking steps to see how they can deal with inflation, underfunding and uncontrollable general price increases. Among those possible future measures are raising taxes on the highest paid people, advice not to apply for early retirement and many more. With this, the Social Security Administration intends to lengthen the trust funds it currently holds.
But there is a new measure that could come for people born after 1960. They could delay the Full Retirement Age (FRA) for those people. This would give the SSA more leeway to be able to pay all retirements without financial problems. The possible change would be mandatory, although nothing is certain yet.
At what age would the new Full Retirement Age be?
Since it is still only a rumor, it is impossible to determine the exact date and exact changes. But it could be implemented sooner than it seems. In addition, the FRA would go from 67 to 68 or 69. This would mean that people born after 1960 would have to wait 1 or 2 more years to reach the retirement break.
If this measure finally comes to fruition, Social Security would have more time to be able to pay current retirement benefits. Although it is important to have in mind that if the FRA comes later, it is quite possible that people will collect more on an individual basis. But there is also the possibility that the calculation would be exactly the same, taking into account the 35 years of higher pay.
It would not be the only measure
For the measure to have the effect the SSA is looking for, it would not be the only measure to adopt. To this measure would have to be added a tax increase on higher salaries and, surely, a lowering of current pensions. Another measure that could also be taken is to extend payments or part of them. It is still too early to know all the measures.
What we do know is that currently the money coming into the Social Security funds is insufficient to pay the retirement benefits of current and future retirees, so it is mandatory to do something to change the situation.
