Social Security retirement age could jump as White House considers options
FILE-In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, D.C. (Photo illustration by Kevin Dietsch/Getty Images)
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The Trump administration is reportedly considering many options to avoid Social Security insolvency, which includes raising the retirement age.
When asked if he would consider raising the retirement age during a FOX News interview on Thursday, Social Security Administration Commissioner Frank Bisignano said, “I think everything’s being considered, will be considered.”
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Could Social Security reach insolvency?
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Why you should care:
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FOX Business, citing Social Security Administration data, reported that Social Security’s two main trust funds, the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) funds, are projected to reach insolvency by 2034.
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This is partially due to the number of workers to retirees has dropped over time from 16.5 workers per retiree in 1950, to 3.3 in 1985, and 2.8 in 2013.
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When the trust funds are exhausted, the Social Security program may experience an automatic benefit cut by law to match incoming payroll tax receipts unless Congress improves the program.
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Analysis from the Committee for a Responsible Federal Budget noted that insolvency would leave Social Security beneficiaries with an estimated 24% benefit cut.
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FOX Business reported that Social Security’s trustees project that Congress would need to increase payroll taxes by 3.65 percentage points permanently to close the program’s 75-year funding gap.
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What they’re saying:
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Social Security Administration Commissioner Frank Bisignano also explained that it will take a collective effort between the Trump administration and Congress to begin the “real work” on Social Security reforms to avoid depleting funds in the program.
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The Source: Information for this story was provided by FOX Business, which cites comments from a FOX News interview with Social Security Administration Commissioner Frank Bisignano and data from the Social Security Administration. This story was reported from Washington, D.C.