In this episode of Retirement Starts Today Radio, we read between the lines of new Social Security reform proposals to better help you understand what might lie ahead for the popular social insurance platform.
Here is the exact wording without any additional commentary:
From Sam Johnson’s website:
The Social Security Reform Act of 2016 ensures Social Security will be there when Americans need it by:
- Modernizing how benefits are calculated to increase benefits for lower income workers while slowing the growth of benefits for higher income workers.
- Gradually updating the full retirement age at which workers can claim benefits. The new retirement age better reflects Americans’ longer life expectancy while maintaining the age for early retirement.
- Ensures benefits keep up with changes in the economy by using a more accurate measure of inflation for the annual Cost-of-Living-Adjustment.
- Protecting the most vulnerable Americans by increasing benefits for lower-income earners and raising the minimum benefit for those who earned less over the course of long careers.
- Promoting flexibility and choice for workers by eliminating the Retirement Earnings Test for everyone. This allows workers to receive benefits—without a penalty—while they are working, or fully delay retirement and wait to receive benefits. For those who delay claiming benefits, they can receive increases in a partial lump sum or add it all to their monthly check.
- Encouraging saving for retirement by phasing out Social Security’s tax on benefits for workers who continue to receive income after they retire or stop working due to a disability.
- Targeting benefits for those most in need by limiting the size of benefits for spouses and children of high-income earners.
- Treating all workers fairly when their Social Security benefits are calculated by using the same, proportional formula that looks at all of an individual’s earnings over the course of his or her career.