A controversial proposed law

The controversial bill would raise the retirement age and lower Social Security payments in the United States. We tell you.

The Republican Study Committee (RSC) launched a proposal to raise the retirement age and reduce Social Security payments.

The proposal aims to control social security spending. The committee is made up of 170 Republicans from the United States House of Representatives.

Therefore, the RSC proposes to raise the retirement age for workers who are still far from retirement.

Meanwhile, higher income earners who are still far from retirement will be affected by the reduction in benefits.

This is part of a fiscal year 2025 budget initiative called “Fiscal Sanity to Save America.”

On the other hand, the document seeks to gradually remove support benefits for those with higher incomes. Let’s remember that this initiative comes days after Joe Biden threatened to arrest those who damage social programs like Medicare.

What is the current minimum retirement age?

In the United States, workers currently have to wait until age 62 to retire. However, the proposal leaves it uncertain by how much, exactly, this retirement age will increase.

In addition, it should be clarified that in order for beneficiaries to receive their full payment, they have to wait until full retirement age. This could be between 66 and 67 years depending on your date of birth.

Meanwhile, the Social Security Administration (SSA) considers factors other than age to define the payments each beneficiary will receive.

Among them are salary earned during the years worked, as well as taxes paid to Social Security during that period.

Therefore, a formula is applied to these earnings, to arrive at the “Primary Sum Assured”. Finally, the amount is adjusted based on the age at which the beneficiary claimed the benefits.