Written by Sharvan Kumar
Social Security restructuring may lead to reduced monthly benefits for future retirees if the program faces funding shortfalls, especially as the trust fund balance decreases over time.
One proposed restructuring change is increasing the Full Retirement Age (FRA) beyond the current 67, which means you may need to wait longer to claim full benefits.
There could be a shift in how COLA adjustments are calculated. If the restructuring includes adjustments to the formula, your monthly benefits may either grow slower or be more responsive to inflation.
To stabilize Social Security funding, payroll taxes could be raised. This might lead to increased taxes for higher earners but could help prevent future cuts to benefits, possibly maintaining or increasing monthly payouts.
Some proposals suggest means-testing, where higher-income retirees could see reduced benefits. If implemented, this could mean that monthly benefits may be adjusted based on income levels during retirement.
Reforms may alter eligibility or benefit amounts for survivors and those receiving disability benefits.
Restructuring might impact how much your monthly benefits are reduced if you choose to take Social Security benefits before your Full Retirement Age.
From East West Hunt