Why isn't Full Retirement Age defined as 70? (years, adult, drugs)
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Sure it does. 1983 was the Ronald Reagan version of class warfare. It's not like the rich haven't been trying to kill off Social Security completely since FDR days. Remember Barry Goldwater? He wanted to kill it but got crushed in the Presidential election. Now, it's really insidious because the rich figured out they could use lunatic fringe issues and Fox News to get people to vote against their interest. Joe Sixpack with near-zero net worth is voting for them because somebody's gonna take his guns or they're baby killers.
Barry Goldwater was 1964 - 55 years ago, only 22 years after payments started and the year before Medicare was started.
In 1960, President Dwight D. Eisenhower approved legislation to allow Social Security benefits for disabled workers and their dependents.
In 1965, the Social Security Act was amended to provide medical insurance to Social Security beneficiaries age 65 and older. This new “Medicare” program also offered people 65 and older the chance to purchase supplemental medical insurance.
In 1972, President Richard M. Nixon signed legislation to provide an automatic cost of living allowance each year to offset the cost of inflation. Prior to the new law, annual increases required Congressional approval.
The 1983 changes to social security were done because it was clear that it was starting to fail, 1982 was the first year that outlays exceeded intake.
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Efforts to Keep Social Security Solvent
By 1977, it was clear Social Security was in financial peril. An amendment was passed changing the benefit qualification formula for people born after 1917. Other amendments were also passed including increasing the payroll tax and slightly decreasing benefits to help cut costs, leaving some beneficiaries with less money during difficult economic times.
These efforts didn’t prevent the program from facing a serious financial crisis in the 1980s, however, and President Ronald Reagan created a commission to examine how to keep Social Security in the black. In 1983, he signed legislation which gradually increased the retirement age to 67, taxed Social Security benefits and provided Social Security benefits to federal workers.
After taking office in 2001, President George W. Bush appointed another Social Security Commission with its top priority being Social Security reform. No revolutionary changes were made to keep the program solvent long-term. Still, the Bush administration extended disability benefits and food stamps to qualified immigrants and their children, eliminated wage credits for the military and expanded Medicare prescription drug coverage.
President Obama‘s administration temporarily reduced the Social Security tax rate from 6.2 to 4.2 percent in 2011 and 2012. The move helped ease financial strain on American workers but did little to stop the risk of Social Security going into future debt.
Almost all the reforms to save the program were done by the Republicans - Show me where the "rich" tried to kill the program - get your facts straight - try pointing to actual data and quit spewing class warfare.
For those with pensions that pretty much support themselves so they are not spending down assets , the pay check never really stopped for them .
That is very different than retirees that have to support themselves and when that pay check ends it ends ....most of us are on the YO-YO RETIREMENT PLAN ... you’re on your own
Most pensions cover only a portion of salaries. Currently (since 1983) pension is about 1/3 of final salary for federal workers if full retirement age. The expectation is that 401K/TSP and SS are the other 2/3rds. It does make it much easier because pension is often essentially inflation protected and has survivor benefits.
The life expectancy of Americans is about 78 years. Most people are in poor health for at least a few years before dying. Retirement at 70 means maybe 5 years of semi-enjoyable retirement in which you could maybe do things you want to do. More than 1/3 of Americans die before age 70, 30% by age 65 - and need to retire earlier before their death because they simply cannot realistically keep working the way they used to.
For those with pensions that pretty much support themselves so they are not spending down assets , the pay check never really stopped for them .
That is very different than retirees that have to support themselves and when that pay check ends it ends ....most of us are on the YO-YO RETIREMENT PLAN ... you’re on your own
I have no assets, though. The pension check is pretty much it.
Most pensions cover only a portion of salaries. Currently (since 1983) pension is about 1/3 of final salary for federal workers if full retirement age. The expectation is that 401K/TSP and SS are the other 2/3rds. It does make it much easier because pension is often essentially inflation protected and has survivor benefits.
Yes. Mine ends with my death, since I have no spouse, but that also means I get the highest amount. My pension is about 67% of the average of my three final years salary.
(They offered the public sector equivalent of a 401k also, but I could not afford to participate.)
The SS reps came to my employer to give a "dog and pony" show, (when I was still working). I specifically asked what was so special about the FRA. This was during the general, public session. They couldn't explain it to where it made any sense.
I stuck around afterward and tried to pin him down. I actually asked why 62 couldn't be considered FRA and every month one delays, the monthly amount would increase. Or, why not make 70 the FRA and every month one takes SS benefits early, the amount is reduced.
Took some teeth pulling but he finally admitted to two very important things happening at FRA. (The stepped age of FRA was explained in a previous post.) From age 62 to FRA, the amount of increase in benefit amount is approximately 5 1/2 % increase per year. From FRA to age 70, the approximate yearly increase is 8%.
The other special thing about FRA is that before FRA, if one works, for every two dollars they earn in employment, SS will hold back one dollar in benefits. After FRA, the restriction is lifted and one can earn as much as they want and it won't affect what they are currently drawing in benefits.
Right. That three years after 67 is a bigger % than the three years before.
Now, it's really insidious because the rich figured out they could use lunatic fringe issues and Fox News to get people to vote against their interest. Joe Sixpack with near-zero net worth is voting for them because somebody's gonna take his guns or they're baby killers.
Most pensions cover only a portion of salaries. Currently (since 1983) pension is about 1/3 of final salary for federal workers if full retirement age. The expectation is that 401K/TSP and SS are the other 2/3rds. It does make it much easier because pension is often essentially inflation protected and has survivor benefits.
True. Mine covers 2/3. But for years we lived on 2/3rds so it’s more like getting 100%.
The life expectancy of Americans is about 78 years. Most people are in poor health for at least a few years before dying. Retirement at 70 means maybe 5 years of semi-enjoyable retirement in which you could maybe do things you want to do. More than 1/3 of Americans die before age 70, 30% by age 65 - and need to retire earlier before their death because they simply cannot realistically keep working the way they used to.
Most pensions cover only a portion of salaries. Currently (since 1983) pension is about 1/3 of final salary for federal workers if full retirement age. The expectation is that 401K/TSP and SS are the other 2/3rds. It does make it much easier because pension is often essentially inflation protected and has survivor benefits.
My comment was to these folks.. for them the pay check never really did stop . It is a very different situation then someone spending down invest assets to delay ss .
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Originally Posted by Mightyqueen801
I have no assets, though. The pension check is pretty much it.
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Originally Posted by mlb
True. Mine covers 2/3. But for years we lived on 2/3rds so it’s more like getting 100%.
Last edited by mathjak107; 12-20-2019 at 01:53 PM..
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