The US government, in joint efforts with the Social Security Administration (SSA), will look to improve Social Security benefits by changing the retirement age. The standard age of retirement in the US is pegged at 62 years. However, the change in retirement age will now see the new age moved to 70 as the nation seeks to improve in the growing deficit that comes from servicing social security and retirement benefits.
Why is the change happening?
The change to the retirement age will be central to improving the quality of benefits that citizens receive upon retirement; however, this is not the major reason behind the adjustment that is happening.
The change is due to the perceived improvement in the life expectancy of many Americans, as it is expected that most Americans will now live up to at least 65 years of age. This discovery is supported by the fact that many Americans are living longer and healthier and are also working less physically demanding jobs that reduce their life expectancy and serve as a danger to their health.
The proposal is also targeted at the alleviation of the budget deficit that has been incurred by the Social Security Administration. The budget deficit is expected to have an impact on the offerings of social security, reaching a critical point as soon as 2035. Therefore, increasing the retirement age, which in turn reduces the number of persons who can receive social security, and giving the SSA even more time to plan better and recover from the deficit represents a valid solution that will be able to lessen the burden.
How much is the new social security payment?
The new social security payment cannot be determined now as the amount that you receive as a beneficiary is deferred yearly and not projected until the end of the third quarter of the current year. As such, determining what the payment will be is almost impossible.
This projection is usually aided by the use of the COLA, which is useful in determining social security for the year. Therefore, the new Social Security monthly payments in the coming years will be announced when the time is right.
