Written By: Ryan Rinehart, Financial Advisor

The last few weeks Social Security Benefits have been a hot topic as Republicans and Democrats continue to bicker about which party wants to improve the program and which one wants to weaken it. So far, there have not been a whole lot of bipartisan efforts towards Social Security reform. However, last month a proposal was put forward by a group of legislators who aim to raise the full retirement age (FRA) for Social Security Benefits. The proposal would raise the full retirement age to 70 from where it currently sits at 67. 

So why would they propose this change? Raising the full retirement age is viewed as a way to lessen the impact of the potential insolvency of the Social Security’s Old-Age and Survivors Insurance (OASI) Trust Fund. This fund finances over 20% of Social Security Benefits. The OASI is what causes fear for Americans in regard to the future of the program because the fund is expected to run out of money by 2033.¹ This would cause Social Security to rely only on payroll taxes for funding. 

How does raising the Social Security full retirement age help solve this issue? Raising the FRA to age 70 might convince more seniors to wait a few more years to start claiming their SS benefits in order to receive a bigger payout. When fewer people start collecting their benefits before age 70, the Social Security Administration will have to pay out less in benefits. This change is obviously not supported by all and while this may improve the long term stability of the program, it also greatly impacts seniors who are already struggling to make ends meet. By raising the FRA to 70, benefits would be reduced for anyone who retires prior to that age and was born after 1978.²

So now we must wait and see what they decide to do. Raising the FRA is certainly not the only idea being discussed, but it seems to be a major part of the focus. Overall, the end goal is for bipartisan Social Security reform that helps Americans feel more confident about their retirement.

Say What?

Courtney Cox, best known for her role as Monica Geller on “Friends,” says she regrets how she handled aging throughout her career in Hollywood. She said thinking she was getting older when she was still really young was a waste of time and it’s one of her biggest regrets. The 58-year-old actress says she’s actually had some of the work on her face reversed so she can age more naturally.     

This week in history

1700 – April Fools’ Day officially dates back to 1700, but some historians speculate it dates back to 1582 when France switched from the Julian calendar to the Gregorian calendar. 

1981 – President Ronald Reagan was shot in the chest outside a Washington, DC hotel. He joked to his surgeons, “Please tell me you’re Republicans.” He resumed some of his executive duties the following day, but did not return to the White House until mid-April. 

1982 – North Carolina freshman Michael Jordan hits the winning shot to give North Carolina its first NCAA championship since 1957. 

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¹ https://www.cbo.gov/publication/58564

² https://www.cnbc.com/2023/02/12/social-security-full-retirement-age-shouldnt-go-higher-experts-say.html