Social Security reduction factor: Link benefits to longevity
Another Social Security reduction factor that’s very similar to the idea of raising the full retirement age is linking benefits to longevity. What does that mean?
Instead of just picking a number out of thin air and saying that by 2040, the full retirement age will be 70, lawmakers would index the full retirement age to US life expectancies so that it changes yearly to mirror increasing or decreasing longevity.
The benefit of this is that this method would get rid of the possibility of life expectancy outdistancing the increase in full retirement age, as we’ve seen for many years now.
Furthermore, linking benefits to longevity will allow lawmakers to make adjustments when delayed-retirement credits max out, which is currently at 70.
Or, if retirees are willing to wait long enough, they could still earn over 100% of their monthly payout, just like under the existing system.
Ultimately, though, progressively linking benefits to longevity would reduce the time beneficiaries could collect a payout, reducing their lifetime benefit.
2 Responses
Are you fear mongering? Are you a senior! you know this first hand? Do you have a solution? If Not why are you scaring senior. You will be senior like it or not? Are you prepared?
you or such a hateful person to scare old people? What is wrong with you? out of ideas for article? Or you just a Democrate. They were the first one to try to take ss away? Tell the truth Be sure old people know this.It will last until you need SS and then gone? What will you do? better get rich quick!