Social Security payments not enough to live on
There are only three states where the average disability benefit is worth enough to even cover half of the cost of living.
And in several areas, average benefit amounts only cover one-third or less of a person’s living expenses.
Possible Social Security reform: benefit cuts
Other legislators have suggested implementing a range of benefit cuts that could save the Social Security program in the long run.
Some policymakers believe benefits should be based on the number of years worked and paid into the system.
Right now, SS benefits are instead calculated based on your earnings across the 35 highest-paying years of your career.
This change however could disproportionately affect those who left the workforce several years to raise children.
“We’re encouraging everybody to work longer. That’s the policy justification for the change,” Mark Miller, author of Retirement Reboot, told Yahoo Finance.
“But it’s just a way to cut benefits and it’s unfair and hits the people who need the money the most.”
Possible Social Security reform: higher retirement ages
Some lawmakers are calling to increase the retirement age to reform Social Security, which is quickly running out of money for future generations.
Today, Americans can reach their full retirement age between 66 and 67, but some plans suggest increasing it to 70.
At age 70, Americans now earn delayed benefit credits, which add eight percent annual increase in benefits each year you wait.
If more Americans knew the benefits of waiting, it’s possible more Social Security funds could be preserved.
Suze Orman advocates seniors wait to claim SS
Financial expert Suze Orman has advocated for seniors to wait until age 70 to claim Social Security benefits.
She said she was a “big believer” in waiting for the maximum benefits that await 70-year-olds in her weekly newsletter.
By doing so, you net yourself the highest possible benefit amount while lessening the load on the national Social Security benefit supply.
Spending for Social Security benefits increased by 10 percent, or $37billion, from October 2022 to January 2022 compared to the year before.
This occurs because the number of beneficiaries is increasing as the Baby Boomer generation reaches retirement age.