Washington officials have announced an important change: they want to eliminate the full retirement age of 67 years for receiving Social Security benefits. Currently, Americans born after 1960 are required to wait until 67 to access full benefits. Supporters of the change say removing the cutoff allows workers to customize retirement schedules to longer living age and more dynamic professional lives.
Retirement age is still optional but now with added perks.
Instead of designating a single retirement age, the new proposal allows benefits to be divided and assigned to the retirement age of 70 and the lowest of 62. The workers who retire early will see their benefits reduced proportionately relative to those who retire after the age of 67. Supporters of the change state that the new provisions will result in higher employment and reduce the burden on Social Security.
Economic and Social Implications
There are both promises and problems with working longer hours. For instance, working longer hours comes with the potential of improving financial stability along with decreasing the strain for public funds. On the flip side, the ability to work longer might be limited by harsh and physically demanding jobs which could worsen existing socioeconomic disparities. There are other proposals by the lawmakers which include provided subsides to manual laborers and more retraining programs to help mitigate these problems.
What’s Next for American Workers?
The policy is expected to be discussed in the committee meetings later this fall. If approved, the policy will be in place by 2027 which gives both employers and employees time to adjust. Worker advocacy groups are preparing to ensure older Americans who work in physically active jobs and low-paying jobs will be better protected. Other anticipations include a greater focus towards early versus delayed claiming of retirement boosting retirement planning consultations.
