Allow “Phasing In” Social Security Benefits? - The Hill
In this interesting opinion piece, one erudite expert suggests that Social Security should offer an option to allow phasing into retirement. This would be done by permitting one to first collect only a portion of their Social Security benefit early, but at the same time permitting them to work and earn without losing some of their benefits due to the annual earnings test. An interesting idea which essentially means allowing one to work and earn without their early Social Security benefit payment being affected. This article by Robert C. Pozen, appearing at The Hill media outlet, explains how his phasing into retirement concept would work (but note that it is just an idea – no formal legislation yet exists to enact it). Click here to read Mr. Pozen’s article in The Hill.
The essence of the concept suggested in the article is to do away with the annual earnings test on those collecting early benefits, an idea strongly supported by the Association of Mature American Citizens (AMAC). Indeed, AMAC has already proposed eliminating Social Security’s Annual Earnings Test as a way to incent those eligible for benefits to claim early and continue working (and thus continue contributing to Social Security providing additional revenue) in its Social Security Guarantee proposal already being discussed with Congressional Representatives.
AMAC’s Position: As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized. This can be achieved without tax increases by slight modifications to cost of living adjustments and payments to high income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports raising the thresholds at which benefits are taxed and then indexing for inflation, and calls for eliminating the reduction in people’s benefits for those choosing to work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.