June 1st, 2011|
Though the debate about whether or not to cut Social Security spending is consuming many a politician these days, a new article from The Wall Street Journal points out that, technically speaking, benefits have already been slashed—in three different ways.
“Policy experts have focused on alternative ways of eliminating Social Security’s 75-year financing gap, but lost in the debate is the fact that even under current law Social Security will provide less retirement income relative to previous earnings than it does today,” writes WSJ.com’s Alicia Munnell.
1) The full retirement age will be extended. The full retirement age is currently set at 65, but that changes to 67 for those who turn 62 in 2022. Those who still choose to retire at age 65 will end up receiving lower monthly benefit payments.
2) Medicare premiums will rise. Medicare premiums, which are automatically subtracted from Social Security benefits, are forecasted to eat up 12% of the benefits of a 2030 retiree. In 2003, a retiree forfeited only 5% of benefits to Medicare premiums.
3) More Social Security beneficiaries will be taxed. By 2020, far more beneficiaries—many who earned incomes classified in the “medium” range—will be taxed on either 50 or 85 percent of the monies they receive from the Social Security Administration.
Do you think enough is being done to protect Americans’ Social Security benefits?
If you need help with your Social Security benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.