Social Security Full Retirement Age May Be Raised Again
Once again, the lawmakers must make changes to Social Security to prevent benefit cuts. Amongst the changes being considered is raising the full retirement age (FRA). It could affect the amount of your monthly payment and make you work longer.
This is not the first time Congress has had to make changes to Social Security to keep it paying out full benefits; it happened as early as 1983 and again in 1993. Social Security is now using the Trust Funds to make full benefit payments as the number of workers decreases, versus the number of beneficiaries increasing. At this point, the combined Trust Funds will be depleted by 2034, which would lead to a substantial cut in the amount of your Social Security payment. It could be as large as 23%, and it would affect all current and future retirees.
The current FRA is 67, but some lawmakers want to increase the FRA to 69 or even 70. This makes it more important than ever to try and increase your savings.
This is not the only option under consideration in Congress to save Social Security. This link is to AMAC’s Social Security Guarantee, where you can read about other options being considered.
For more information on the possibility of raising the FRA, check out this article by Maurie Backman on MotleyFool.com
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