This controversial bill would increase the retirement age and lower Social Security payments in the United States. We're telling you.
A proposal to raise the retirement age and lower Social Security payments launched the Republican Study Committee (RSC).
The proposal aims to regulate social security expenses. The committee consists of 170 Republicans from the US House of Representatives.
Therefore, the RSC proposes to raise the retirement age for those workers who are still far from retirement.
Meanwhile, people with higher incomes who are also far from retirement will be affected by the benefit cuts.
This is part of the FY 2025 budget initiative called “Fiscal Safety to Save America.”
On the other hand, the document seeks to gradually eliminate additional benefits for people with high incomes. Let us remember that this initiative comes days after Joe Biden threatened to arrest those who harm social programs, such as the Medicare program.
What is the current minimum retirement age?
In the United States, workers currently have to wait until age 62 before retiring. However, the proposal leaves it undecided exactly how much the retirement age will increase.
In addition, it should be made clear that in order for beneficiaries to receive their full payments, they must wait until full retirement age. You can be between 66 and 67 years old, depending on your date of birth.
Meanwhile, to determine what payments each beneficiary will receive, the Social Security Administration (SSA) takes into account other factors in addition to age.
Among them are the salary earned during the years you worked, as well as the taxes paid to Social Security during that time period.
Therefore, to arrive at the Basic Sum Assured, a formula is applied to these earnings. Finally, the amount is adjusted based on the age at which the beneficiary claimed benefits.
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