A controversial proposed law

The controversial bill would raise the U.S. retirement age and lower Social Security payments. We tell you.

The Republican Study Group (RSC) introduced a plan to raise the retirement age and cut Social Security payments.

The plan aims to regulate social security spending. A group of 170 Republicans from the US House of Representatives.

Therefore, the RSC proposes to increase the retirement age for workers who are yet to retire.

Meanwhile, those with higher incomes, who are further away from retirement, will be hit by cuts in benefits.

It's part of a fiscal year 2025 budget initiative called “Fiscal Welfare to Save America.”

On the other hand, the document seeks to phase out supplementary benefits for high earners. Let's remember that this effort comes just days after Joe Biden threatened to arrest those who damage social programs like Medicare.

What is the current minimum retirement age?

In the US, workers currently have to wait until age 62 to retire. However, the proposal does not specify how precisely this retirement age would be increased.

In addition, it should be clarified that beneficiaries must wait until their full retirement age to receive their full payment. It can be between 66 and 67 years depending on your date of birth.

Meanwhile, the Social Security Administration (SSA) takes into account other factors in addition to age to determine the amount of payments each beneficiary receives.

They include salary received during the years of work, as well as taxes paid to social security.

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