Why is the Social Security Retirement Age Increasing?

What causes social security retirement ages to increase continually? Underlying pressures remain in conflict and may change rapidly in years to come.

Changes in minimum retirement ages under the Social Security Act reflect several important reforms occurring within the United States government. Life expectancies for the general population increased. Funds for benefit payments, based on projected tax receipts, are in sufficient to meet future obligations. Government services for middle and lower income Americans are under constant review for excessive spending. The combination of these three factors resulted in slight increases in minimum ages required for social security retirement income eligibility.

Social Security Life Expectancies

The social security system is more than 70 years old. When the program began in 1940, the average life expectancy in the U.S. was 63 years of age. At that time, benefits became available at age 65. An average American did not receive retirement benefits. Currently, the average life expectancy in the United States, including both sexes and all races, is 78 years of age. An average American is projected to receive retirement benefits for 11 to 13 years.

Fund Availability

The constant increase in benefits payable exceeded underlying tax rates used to fund the system. The program originally collected significantly more in taxes than eventually paid. Excess funds grew and became available for future generations. Today, payment of benefits exceeds the amount of social security and self-employment taxes collected. Estimates range from 13 years to 30 years before depletion of all available funds. Congress reacted by increasing the minimum age to receive funds to extend time available to find a better solution.

Government Reform

Following the economic downturn, all government programs are subject to review for viability and total cost compared to the value of benefits provided to American taxpayers. Debates rage regarding the best use of public funds. Currently, opposing political positions remain in conflict.

Related posts

1. Am I Eligible For Social Security?
2. How Will Social Security Change In the Next 30 Years?
3. What Factors Affect My Social Security As I Approach Retirement Age?
4. If I Retire To Another Country, Can I Still Collect Social Security?
5. How Do I Qualify For Social Security Benefits?

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