For many years, Social Security has provided a crucial security net for pensioners, the disabled, and living family members. Yet, the program is dealing with financial issues that can call for adjustments in the upcoming years. Let’s look at 3 possible future changes to Social Security payouts.
Increasing the full retirement age (FRA), the age at which people can collect their full Social Security benefits is one potential modification. Some analysts believe that raising the full retirement age, which is presently 67 for people born in 1960 or later, might minimize the program’s financing issue.
Yet, this move may result in future pensioners continuing for longer periods, therefore its effects on people with physically demanding employment or few job options should be carefully considered later.
As the decreases are dependent on the interval around your filing age and the Full Retirement Age, this adjustment will also lead to a reduced benefit for the first filers at age 62. For instance, filing at age 62 could end in a payout that is just 65% of your Full Retirement Age benefit amount if the FRA were raised to 68.