It is essential to know that changes to the Social Security system is not new and have occurred regularly throughout history — often with a minimal negative impact on current retirees. Historically, when the United States has struggled with Social Security challenges, legislation has been drafted to address these issues.
For example, In 1983, when the Social Security system was on the brink of collapse, there was a complete overhaul of Social Security benefits. The overhaul raised the full retirement age for future retirees from 65 to 67, changing the structure of delayed retirement credits and creating taxation on Social Security benefits. (Before 1983, benefits were tax-free.) Historically, most changes have been phased in over time to minimize the impact on current retirees. Let us take a closer look at some of the changes that have been proposed in different variations over time and their potential impact. We will talk more about this on future posts. For a customized report on your personal best Social Security claiming strategy click HERE.