Recent remarks by Social Security Commissioner Frank Bisignano reportedly caused worry among many retirees. They felt that a change to social security might be in the offing, which would impact financial planning, including one’s retirement.
The latest remark from Bisignano that caused concern was about the retirement age. When asked whether raising the full age for retirement was on the table, the Trump appointee replied “everything’s being considered.”
These remarks caused worry among many retirees who felt that there could be delays in getting benefits or one might face cuts down the line. Amid much concerns, Bisignano issued a statement the next day to allay fears. He stated that he and President Donald Trump would ‘always protect Social Security’. Trying to quell worries among retirees, the official added that there were no considerations to raise the retirement age.
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Despite the clarification, lawmakers like Elizabeth Warren and others, have voiced opposition. In a letter they reportedly said that Bisignano’s remark had left millions of Americans ‘alarmed and confused’ about what their benefits might look like. Further, lawmakers warned that raising the age to 69 for retirement would lead to a major benefit cut and some workers might even lose thousands of dollars of lifetime income. Lawmakers also pointed out that upping the retirement age would not solve the long-term funding gap which is causing issues in Social Security payments.
Notably, despite the recent remarks from the Trump appointee, the President himself has largely maintained that he would not cut benefits or raise the retirement age.
How increasing retirement age would affect people
While this plan is not in the pipeline, increasing the retirement age from 67 to 69 for social security benefits means that full benefits would be pushed back by two years.
Thus, a person planning to retire at 67 and depend on social security payments would either have to keep working for two more years, or forgo two years of pension.