President Biden on Friday fired Social Security Commissioner Andrew Saul, a holdover from the Trump administration, after Saul refused a request to resign from his position.Biden fires head of Social Security Administration — https://thehill.com/homenews/administration/562342-biden-fires-head-of-social-security-administration
There will be more changes coming to social security.
Higher taxes, no doubt. But also improved benefits for those in need if I’m reading the Tarot cards correctly.
A study by the Center for Retirement Research at Boston College found that the delayed credit is still about right, with the exception of the highest earners, who tend to outlive actuarial averages and reap the highest extra benefit. Conversely, the group hurt the most are low-income filers, who tend to claim earlier and effectively are overcharged for doing so. Moreover, the increase in FRA from 65 to 67, enacted in the reforms of 1983, effectively increased the penalty for earlier files. Claimers with an FRA of 67 will receive five years of early filing reductions rather than three.It’s Time to Revisit Social Security’s Early and Delayed Claiming Formulas — https://www.morningstar.com/articles/1029357/its-time-to-revisit-social-securitys-early-and-delayed-claiming-formulas
The first sentence from the above paragraph caught my eye. So I went on to the BC website.
People can claim Social Security from 62 to 70, with adjustments to keep lifetime benefits the same, on average, regardless of claiming age. The question is whether the adjustments, set decades ago, are still correct, given the decline in interest rates and increase in life expectancy. For the average worker, the analysis shows that the reduction for claiming early is currently too large while the increase for claiming late is about right.
Higher earners – who live longer and claim later – get a really good deal under the current system.Are Social Security’s Actuarial Adjustments Still Correct? — https://crr.bc.edu/briefs/are-social-securitys-actuarial-adjustments-still-correct/
People with more money tend to live longer. People who defer claiming social security benefits until beyond FRA (full retirement age) are generally healthier, expect to live longer, and are financially secure enough to delay claiming. If the SSA decides to enhance benefits for early retirees it would be a good thing for a lot of people, especially those who have been severely impacted by the pandemic.
Schroders surveyed pre- and post-retirees 45 and older and found that only 10% planned to wait until 70 to claim benefits.Wait Till 70 for Social Security? No Way, Say Most Americans: Survey — https://www.thinkadvisor.com/2021/06/24/wait-till-70-for-social-security-no-way-say-most-americans-survey/
It is painfully obvious to me that the majority of Americans are claiming benefits at both early and full retirement ages because they need the money and can’t afford to wait until age 70. Only healthy elders on financially sound footings will be deferring social security payments until their later years.
The SSTF has stated that the date in which the TF falls to zero will be 2033. The actual termination date of the TF is much closer than that. It could come as early as 2023. Anyone who is 55 or older should be worried about this. Based on current law, all SS benefit payments must be cut by approximately 25% when the TF is exhausted. This will affect 72 million people. The economic consequences will be severe. The drop in SS transfers translates into a permanent drag on GDP of 2%. In other words, when this happens, the country will be unable to have any significant positive growth for a long time to come.
via Bruce Krasting: Bernanke – My Goal is to Wreck Social Security.
TF = Trust Fund
Y’all better start planning for a much smaller Social Security payout. Interesting viewpoint in this blog post. Ignore at your own risk.
Social Security: AAA Calls for Increase in Retirement Age – Regulatory,Legislative and Tax Issues – Life and Health Insurance News
Posting of this link does not imply agreement with the stated position.
I try to avoid politics at all costs.
But these guys must not be French.