This controversial bill would increase the retirement age and lower Social Security payments in the United States. We tell you.
A proposal to raise the retirement age and reduce Social Security payments launched the Republican Study Committee (RSC).
The proposal aims to regulate Social Security expenses. The Committee is made up of 170 Republicans from the United States House of Representatives.
Therefore, the RSC proposes increasing the retirement age for those workers who are still far from retiring.
Meanwhile, people with higher incomes who are also far from retiring would be affected by the reduction in benefits.
This is part of a fiscal year 2025 budget initiative called “Fiscal Sanity to Save America.”
On the other hand, the document seeks to gradually eliminate auxiliary benefits for people with higher incomes. Let us remember that this initiative comes days following Joe Biden threatened to arrest those who cause damage to social programs, such as Medicare.
What is the current minimum retirement age?
In the United States, workers currently must wait until age 62 to retire. However, the proposal leaves it unspecified by how much, precisely, this retirement age would increase.
In addition, it should be clarified that for beneficiaries to receive their full payment, they must wait until full retirement age. This might be between 66 and 67 years old, depending on your date of birth.
Meanwhile, to define the payments that each beneficiary will receive, the Social Security Administration (SSA) takes into account other factors in addition to age.
Among them is the salary received during the years worked, as well as the taxes paid to Social Security during that period of time.
So, to arrive at the “primary insurance amount,” a formula is applied to these earnings. Finally, the amount is adjusted based on the age at which the beneficiary claimed the benefits.
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