Social Security Commissioner Frank Bisignano’s recent comments have reportedly caused concern among many retirees. They felt that there could be a change in social security, which would affect one’s financial planning, including retirement.
Many Americans plan for retirement with Social Security benefits in mind. Images for representational purposes. (Pixabay)Bisignano’s latest comment raised concerns about the retirement age. Asked if raising the full retirement age was on the table, the Trump appointee replied “everything is being considered.”
The comments caused concern among many retirees who felt that benefits could be delayed or one could face a cut in line. Amidst much concern, Bisignano issued a statement the next day to allay fears. He said he and President Donald Trump will ‘always protect Social Security.’ Trying to allay concerns among retirees, the official added that there is no consideration of raising the retirement age.
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Despite the clarification, lawmakers like Elizabeth Warren and others have expressed opposition. In a letter, they said Bisignano’s comments left millions of Americans ‘alarmed and confused’ about what their benefits might look like. Further, lawmakers warned that raising the retirement age to 69 would lead to a large benefit cut and some workers could even lose thousands of dollars in lifetime income. Lawmakers also noted that raising the retirement age would not solve the long-term funding gap that is causing problems in Social Security payments.
Notably, despite recent comments from Trump appointees, the president himself has largely maintained that he will not cut benefits or raise the retirement age.
How will raising the retirement age affect people? While that plan is not in the pipeline, raising the retirement age for Social Security benefits from 67 to 69 means full benefits will be pushed back two years.
Thus, a person planning to retire at age 67 and relying on Social Security payments must either continue working two more years, or give up two years of pension.
