Full Retirement Age For Social Security Benefits Changed—One Expert Explains the Shift | Global News Avenue

Over the years, 65 is the age when you can retire and start receiving all Social Security benefits, but a law passed in 1983 changed some beneficiaries.

this Full retirement age (FRA) For social security benefits This year’s roses Under the amendment to the plan, it aims to expand its funding. Retireds born in 1960 or later can only receive their full social security benefits at the age of 67. Workers who can continue to be three to seventy years old will receive more years of work benefits.

Investopedia asked Maria Freese, a senior legislative representative of the National Council, to uphold social security and health insurance, to explain the rise of the FRA and how it affects retirees. For brevity and clarity, the interview was edited.

Investopedia: Why will FRA increase this year?

Maria Freese: The increase in retirement age is part of the last series of major amendments formulated by Congress in 1983. They are very close to not having enough money to pay the full benefits. So they proposed bipartisan compromise legislation that would increase taxes on the plan, including some benefits cuts. The increase in retirement age is one of the benefits cuts included in the legislation.

It was extended for a long time so that people had time to plan. In fact, it is done in two increments. Over about five years, the ages ranged from 65 to 66, and then stagnated for nearly 10 years, and then began to recover to 67, which is where it is now.

Investopedia: What happens to individuals who create retirement plans so that they can fully retire at 65, but when they retire, that age is two years later?

Freese: Well, I think most people will do their best to work if they are healthy enough to get the job done, and if they are working there.

What people often find is that health issues force them into Retirement earlier than expected When they are younger, it means they end up having to ask for social security because they don’t have enough savings or other sources of income cannot replace them.

This is unfortunate because it basically means they have less money to retire than they think. So it ends up being one of the situations in which they really rely on Social Security benefits.

A large percentage of people rely on Social Security benefits for all or most of their income. So when you have a situation like this, you really don’t have much flexibility.

For example, we found that many members are doing things like not renewing the prescription or splitting the pills in half to affordable so that they can do a lot of other things to cut costs because they are relying on social security about all or most of their income Welfare.

Investopedia: Currently, the entire retirement age will stop adding individuals born in 1960 or later. Do you think you will increase your full retirement age in the future?

Freese: It won’t rise unless Congress passes legislation Increase retirement agethat’s what Republicans have been pushing for years – to raise retirement age to 70, or to link it to life expectancy.