Should the Retirement Age Be Raised to Save Social Security?

Should the Retirement Age Be Raised to Save Social Security?

Here’s The Scoop

In a bid to safeguard the future of Social Security, the Trump administration is exploring all possible avenues, including the controversial idea of raising the retirement age. This move aims to address the looming threat of Social Security insolvency, which is projected to hit in early 2034.

Frank Bisignano, the U.S. Social Security Administration Commissioner, shared insights on “Mornings with Maria,” emphasizing that all options are on the table. “Most people believed Social Security wouldn’t last,” he remarked, hinting at the need for new rules for future generations.

The stark reality is that Social Security’s main trust funds are on a path to depletion, partly due to a shrinking ratio of workers to retirees. In 1950, there were 16.5 workers for every retiree, but that number has dwindled to about 2.8 today. This demographic shift is a significant factor in the financial strain on the system.

Without reform, the depletion of these trust funds would trigger an automatic reduction in benefits, potentially slashing them by 24% on average. The nonpartisan Committee for a Responsible Federal Budget warns that Congress would need to hike payroll taxes significantly to bridge the funding gap over the next 75 years.

When questioned by FOX Business’ Maria Bartiromo about the potential savings from raising the retirement age, Bisignano acknowledged a range of options that could be beneficial. He stressed the importance of collaboration among key stakeholders, including the Treasury, Labor, and Health and Human Services secretaries, along with Congress and the White House, to protect and preserve Social Security.

A recent Allianz Life study highlights growing retirement anxiety, with only 28% of Americans confident in their financial preparedness—a 13-point drop since 2020. Concerns about market volatility and Social Security’s future are particularly acute among Gen X, with 70% fearing running out of money more than death itself.

Beyond raising the retirement age, discussions are also underway about lifting the contribution cap, a move that could further bolster the system’s finances.

As the administration continues its efforts, the clock is ticking. With less than 200 days into this administration, the need for Congress to step up and collaborate is more pressing than ever. The goal remains clear: to ensure Social Security remains a reliable service for the American public, now and in the future.

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