Latest news with #SocialSecurityFairnessAct
Yahoo
an hour ago
- Business
- Yahoo
'70 Is The New 50' — Baby Boomers Are Being Told to Keep Working Because They're Mentally Sharp, But Is That A Compliment or Just a Budget Fix?
If you're cruising toward retirement and fantasizing about beach chairs and bottomless mimosas, you might want to put a pin in that. According to the International Monetary Fund, 70 is the new 50 — and they're not talking about Botox. A sweeping new study says boomers are sharper, stronger, and more employable than is exactly why some experts think they should stay on the job. Don't Miss: Maximize saving for your retirement and cut down on taxes: . Invest where it hurts — and help millions heal:. The IMF's report, which drew from cognitive and physical performance data on 1 million people aged 50 and older across 41 countries, suggests older adults today are operating on a whole new level. A 70-year-old in 2022, it says, is performing about the same—mentally and physically—as a 53-year-old in 2000. That means better memory, math skills, and even grip strength. Translation: boomers aren't aging out—they're leveling up. And that's got some major institutions eyeing this so-called "silver economy" like it's a gold mine. The IMF isn't just cheering on senior brainpower. It's also warning that aging populations could tank public finances unless countries tap into this growing, capable workforce. With birth rates falling and the working-age population shrinking, the idea is that older adults might need to step up—or at least, not step away too soon. Trending: Denmark's already made its move. Starting in 2040, the country will raise the public pension age to 70—the highest in Europe. Since 2006, Denmark has been tying retirement age to life expectancy. The U.S. doesn't have a mandatory retirement age, but it does have a full retirement age for Social Security—66 to 67, depending on your birth year. Waiting until 70 unlocks the max payout – 8% more for each year you delay. However, a 2023 paper National Bureau of Economic Research found that only about 10% of Americans wait that long, even though over 90% would benefit from doing so. Still, proposals to push the official full retirement age to 70 have been floating around. Sen. Rand Paul (R-KY) introduced one in late 2023 as part of negotiations over the Social Security Fairness Act. His idea? Raise the retirement age three months per year until it hits 70, saving nearly $400 billion. That proposal was ultimately scrapped, but the debate is far from over. Here's where it gets messy: while working longer might be viable for some, it's not a fair deal for everyone. "When you have such a big, big difference [in life expectancy], any across-the-board increase in the retirement age would be foolish," said Alicia Munnell of Boston College's Center for Retirement Research told CNBC. For lower-income Americans, who already have shorter life spans and fewer savings, later retirement could mean fewer years enjoying the benefits they've paid Biggs, a senior fellow at the American Enterprise Institute, adds another wrinkle: even if the government raised the age tomorrow, it would take decades for the savings to kick in. Meanwhile, Social Security's funding crisis is coming fast—and needs money now. Yes, boomers are healthier and sharper than ever. That's worth celebrating. But pushing them to stay in the workforce longer—especially in physically demanding jobs or in sectors where ageism is still a problem—can't just be about fixing budget shortfalls. The silver economy may be rising, but whether that's empowerment or pressure depends on who's holding the stopwatch—and who gets to choose when the clock runs out. Read Next: Many are using retirement income calculators to check if they're on pace —image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article '70 Is The New 50' — Baby Boomers Are Being Told to Keep Working Because They're Mentally Sharp, But Is That A Compliment or Just a Budget Fix? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
8 hours ago
- Business
- CNET
Social Security Fairness Act: Some Beneficiaries Have To Wait Until November To Get Paid
The Social Security Fairness Act means more money for certain beneficiaries. Here's what to know. J.J. Gouin/Getty Images The Social Security Fairness Act went into effect in Feb 2025 and the SSA has been sending billions in retroactive payments and benefit adjustments to qualifying individuals. The act gets rid of two rules and will result in a boost in monthly payments for former and current public employees who previously had their benefits reduced due to having "noncovered pensions." As of Apr 29, over $14.8 billion in retroactive payments have been sent out to 2.2 million beneficiaries. The SSA says the average retroactive payment so far is $6,710 and new benefit amounts could be over $1000 for some people. Payments and benefit adjustments began rolling out in April, but if you qualify and haven't noticed any change in your payment yet, don't worry. Read on to find out exactly what rules were repealed, who benefits from the Social Security Fairness Act and why some people are still waiting for their payments. For more, don't miss the Social Security payment schedule and how to apply for Supplemental Security Income. What is the Social Security Fairness Act? The Social Security Fairness Act was passed by the House in November, and signed by former President Joe Biden on Jan. 5. It eliminates earlier rules that limited payments to public service workers such as teachers, firefighters, postal service workers and police officers, meaning that those people will soon receive bigger payouts. Specifically, it repeals these two rules: The Windfall Elimination Provision (PDF), enacted in 1983, is a formula used to adjust Social Security worker benefits for people who receive "noncovered pensions" and who qualify for Social Security benefits on other earnings that are covered by Social Security. A noncovered pension is one paid by someone's employer that did not withhold Social Security taxes from their salary. The Congressional Budget Office predicts (PDF) the elimination of the WEP would increase benefits by $360 on average for 2.1 million Social Security beneficiaries. This would further increase to $460 on average for 1.8 million recipients by December 2033. The Government Pension Offset was enacted in 1977 and adjusted in 1983 and reduced the Social Security benefits of spouses, widows and widowers who also received government pensions of their own. The elimination of the GPO, the CBO predicts, will increase monthly benefits payments by around $700 for spouses and $1,190 for surviving spouses in December 2025. By December 2033, payments would be up to $860 and $1,520, respectively. Collectively, only about 4% of all Social Security beneficiaries (PDF) are affected by the WEP and GPO, but to the 2.8 million qualifying individuals (down from the 3.2 million the SSA reported in April), the impact on those households could be profound. The act applies to payable benefits after December of 2023, meaning back payments will be issued for qualifying individuals. Due to the increase in Social Security payments, the CBO estimates a reduction in Supplemental Nutrition Assistance Program payments for those who participate in both programs. How will qualifying individuals be notified? The SSA says that if you are due a retroactive payment or an adjustment, you will receive a notice in the mail. However, some beneficiaries might receive two notices in the mail. One to inform when the WEP or GPO is being removed from their record and another with the benefit change or retroactive payment. In some cases, a beneficiary may receive a retroactive payment before they receive their mailed notice. Some might have to wait until November to get paid While the SSA has made substantial strides in getting back payments and new benefit amounts to beneficiaries, this is largely in part due to automation. However, the SSA says that more complex cases that can't be handled through the automation process must be manually updated. This goes for both retroactive payments and benefit adjustments, and the payments are being sent out as they complete each case. The SSA expects to complete the remaining adjustments by early November. As of May 23, 87% of the adjustments have been completed, totaling 2.4 of the 2.8 million beneficiaries. What should qualifying individuals do in the meantime? Now that the Social Security Fairness Act has gone into effect, there isn't much a qualifying individual needs to do. The only thing the SSA suggests is to have your current mailing address and direct deposit information listed in your account. You can do this online via your my Social Security account or by visiting a local office. For more, don't miss our Social Security and SSDI cheat sheet and four ways you could potentially lose your Social Security benefits.
Yahoo
8 hours ago
- Business
- Yahoo
Social security employees warn of delays: What the new priorities means for your benefits
If you need to update Social Security about on a recent move or bank account change, get in line. It could be a while. Such cChanges like these may are likely to take longer, and thousands of Americans could see delays or even stopped checks in the meantime, Social Security employees warned USA TODAY. That's because Social Security officials have tweaked what they want some employees to treat as a priority for at least the next month to include about 900,000 complicated cases that must be completed by hand. While the White House says the additional work won't affect other beneficiaries, employees tell USA TODAY that adding something new and complicated at the top of their daily to do lists means other work doesn't get done. Some of the work that they expect to fall through the cracks ‒ like changing direct deposit information or fixing problems with Medicaid billing ‒ could mean the difference between receiving a check or not, they said. Social Security Administration employees at processing centers generally prioritize new claims and appeals each day. In late May, employees at many of the nation's eight processing centers were told to put Social Security Fairness Act payments at the top of their work list and were offered weekend overtime to get it done. More: Public workers waited 40 years for law to boost Social Security. Now, they wait for payout Early this year, former President Joe Biden signed into law the Social Security Fairness Act that will boost benefits to public servants like former teachers or postal workers, to account for money they paid into Social Security for their summer or off-hour private sector jobs but weren't fully paid under previous law. The agency initially set a November deadline to process over 3.2 million Fairness Act claims. New Social Security commissioner Frank Bisignano told senators during his March confirmation hearing that he will prioritize those payments and the work will be done 'while the weather is warm.' 'Using automation, SSA has already expedited over $15.1 billion in long-delayed retroactive payments to more than 2.3 million individuals affected," White House spokesperson Liz Huston said. The agency is prioritizing the remaining about 900,000 cases that are too complex to be processed through automation. These cases require additional time to manually update the records and pay both retroactive benefits and the new benefits amount. Huston said the agency won't let other needs fall behind. "This project is very important to leadership and it's critical the agency executes it swiftly, efficiently, and without letting anything else fall through the cracks," Huston said. But months of upheaval at the Social Security Administration, which distributes retirement, disability, and survivor benefits to more than 70 million Americans of all ages, has spooked many who rely on money provided by the agency for either day-to-day help or for security in their retirement. Thousands of employees have accepted early buyout offers, interim leaders have changed what identification can be used and modification to technology behind the scenes caused multiple website failures. The turmoil led to increased wait times on the phone and extended waits to schedule in-person appointments at field offices. A half-dozen employees at several of the nation's Social Security processing centers said they were told that the new commissioner wants all of the Social Security Fairness Act claims resolved by July 1, and that they also need to address a backlog of claims that has built up. Several of the processing center employees who spoke to USA TODAY said they are afraid of retribution for speaking to the media. Multiple Social Security employees said the orders were relayed verbally, rather than in a written directive, which they said is unusual. Normally an edict to change priorities would have come by email so everyone received the same information, one employee said. One employee at a processing center on the East Coast shared a Teams message from their manager with USA TODAY that stated they should only assist if the call is related a new claim, an appeal or a Social Security Fairness Act case 'until our workload focus is lifted.' The message states they currently expect that order to end July 1, and instructs the employee to inform callers that they cannot help with other issues until then. More: Social Security wait times were already long under Biden. They're even longer under Trump. Employees who received the order said they were told they cannot help with non-priority issues like overpayment reconsideration, updating direct deposit information, checking on monthly payment rates, and Medicare billing related issues. An employee at a processing center on the West Coast told USA TODAY that processing new claims has always been the agency's top priority, but that adding the Social Security Fairness Act claims as a must-do item will cause delays in resolving more complicated and time consuming problems. The East Coast employee said he's having to tell caller after caller that he cannot address their Social Security-related need for the next month, which results in both him and his manager being yelled at all day. Employees working at some processing centers have been offered overtime to work Saturdays and Sundays for the next five weeks in order to ensure they complete their priority assignments and possibly complete other work, the employees said. Some who offered to work the overtime were told they could be allowed to work the overtime from home. Another employee in a separate East Coast processing center said they agreed to work several hours on Saturday for time and a half pay. They spent a day in late May processing only new claims and Social Security Fairness Act cases, which their manager said would continue through the end of June. The employee said they normally spend about 6 hours of each work day on issues like problems with Medicaid payments, death underpayments or when disability benefits and retirement benefits are accidentally paid at the same time. Those will not get done, the employee said. We want to hear from people affected by or who have inside knowledge of the Trump administration's efforts to reshape the government, including actions by DOGE. Know something others should? Reach out at swire@ or Signal at sarahdwire.71 This article originally appeared on USA TODAY: Social Security workers warn of delayed benefits as focus shifts
USA Today
9 hours ago
- Business
- USA Today
Social security employees warn of delays: What the new priorities means for your benefits
If you need to update Social Security about on a recent move or bank account change, get in line. It could be a while. Such c Changes like these may are likely to take longer, and thousands of Americans could see delays or even stopped checks in the meantime, Social Security employees warned USA TODAY. That's because Social Security officials have tweaked what they want some employees to treat as a priority for at least the next month to include about 900,000 complicated cases that must be completed by hand. While the White House says the additional work won't affect other beneficiaries, employees tell USA TODAY that adding something new and complicated at the top of their daily to do lists means other work doesn't get done. Some of the work that they expect to fall through the cracks ‒ like changing direct deposit information or fixing problems with Medicaid billing ‒ could mean the difference between receiving a check or not, they said. What changed? Social Security Administration employees at processing centers generally prioritize new claims and appeals each day. In late May, employees at many of the nation's eight processing centers were told to put Social Security Fairness Act payments at the top of their work list and were offered weekend overtime to get it done. Early this year, former President Joe Biden signed into law the Social Security Fairness Act that will boost benefits to public servants like former teachers or postal workers, to account for money they paid into Social Security for their summer or off-hour private sector jobs but weren't fully paid under previous law. The agency initially set a November deadline to process over 3.2 million Fairness Act claims. New Social Security commissioner Frank Bisignano told senators during his March confirmation hearing that he will prioritize those payments and the work will be done 'while the weather is warm.' 'Using automation, SSA has already expedited over $15.1 billion in long-delayed retroactive payments to more than 2.3 million individuals affected," White House spokesperson Liz Huston said. The agency is prioritizing the remaining about 900,000 cases that are too complex to be processed through automation. These cases require additional time to manually update the records and pay both retroactive benefits and the new benefits amount. Huston said the agency won't let other needs fall behind. "This project is very important to leadership and it's critical the agency executes it swiftly, efficiently, and without letting anything else fall through the cracks," Huston said. But months of upheaval at the Social Security Administration, which distributes retirement, disability, and survivor benefits to more than 70 million Americans of all ages, has spooked many who rely on money provided by the agency for either day-to-day help or for security in their retirement. Thousands of employees have accepted early buyout offers, interim leaders have changed what identification can be used and modification to technology behind the scenes caused multiple website failures. The turmoil led to increased wait times on the phone and extended waits to schedule in-person appointments at field offices. 'Until our workload focus is lifted' A half-dozen employees at several of the nation's Social Security processing centers said they were told that the new commissioner wants all of the Social Security Fairness Act claims resolved by July 1, and that they also need to address a backlog of claims that has built up. Several of the processing center employees who spoke to USA TODAY said they are afraid of retribution for speaking to the media. Multiple Social Security employees said the orders were relayed verbally, rather than in a written directive, which they said is unusual. Normally an edict to change priorities would have come by email so everyone received the same information, one employee said. One employee at a processing center on the East Coast shared a Teams message from their manager with USA TODAY that stated they should only assist if the call is related a new claim, an appeal or a Social Security Fairness Act case 'until our workload focus is lifted.' The message states they currently expect that order to end July 1, and instructs the employee to inform callers that they cannot help with other issues until then. Employees who received the order said they were told they cannot help with non-priority issues like overpayment reconsideration, updating direct deposit information, checking on monthly payment rates, and Medicare billing related issues. An employee at a processing center on the West Coast told USA TODAY that processing new claims has always been the agency's top priority, but that adding the Social Security Fairness Act claims as a must-do item will cause delays in resolving more complicated and time consuming problems. Yelled at all day The East Coast employee said he's having to tell caller after caller that he cannot address their Social Security-related need for the next month, which results in both him and his manager being yelled at all day. Employees working at some processing centers have been offered overtime to work Saturdays and Sundays for the next five weeks in order to ensure they complete their priority assignments and possibly complete other work, the employees said. Some who offered to work the overtime were told they could be allowed to work the overtime from home. Another employee in a separate East Coast processing center said they agreed to work several hours on Saturday for time and a half pay. They spent a day in late May processing only new claims and Social Security Fairness Act cases, which their manager said would continue through the end of June. The employee said they normally spend about 6 hours of each work day on issues like problems with Medicaid payments, death underpayments or when disability benefits and retirement benefits are accidentally paid at the same time. Those will not get done, the employee said. We want to hear from people affected by or who have inside knowledge of the Trump administration's efforts to reshape the government, including actions by DOGE. Know something others should? Reach out at swire@ or Signal at sarahdwire.71
CNBC
3 days ago
- Business
- CNBC
As Denmark raises its retirement age to 70, experts weigh in on whether the U.S. may follow its lead
Denmark has moved to increase its retirement age to 70 — making it the highest retirement age in Europe. Yet it may be difficult for the U.S. to follow its lead. The new change in Denmark will apply to public pension retirements starting in 2040. Since 2006, the country has been adjusting its retirement age to reflect changes in life expectancy. The U.S. does not technically have an official retirement age. At age 65, individuals become eligible for Medicare coverage. At age 66 to 67, depending on date of birth, an individual becomes eligible for full Social Security benefits based on their earnings record. More from Personal Finance:House Republican tax bill favors the richSome lawmakers want to defer capital gains taxes for mutual fundsWhat the House GOP budget bill means for your money However, those individuals who wait until age 70 to claim Social Security retirement benefits stand to get the biggest payout — an increase of 8% for each year beyond full retirement age. (The full retirement age is when beneficiaries are eligible for 100% of the benefits they've earned based on their work records.) Yet few people wait until age 70 to claim benefits. While more than 90% of individuals would benefit from delaying Social Security until that age, only about 10% actually do, according to a 2023 paper from the National Bureau of Economic Research. While age 70 is not the official U.S. retirement age, it is the threshold based on economists' definition — the age at which you can't accrue any more benefits, according to Teresa Ghilarducci, a labor economist and professor at The New School for Social Research. "In the United States, it's been 70 for decades, and we had the highest retirement age than any other country for years," Ghilarducci said. Yet there are efforts to officially bump up the U.S. retirement age higher. In 1983, Congress passed legislation to gradually raise the full retirement age for Social Security from 65 to 67. That change is still getting phased in today, with people born in 1960 and later subject to the higher 67 retirement age. In December, an amendment to raise the full retirement age to 70 was introduced by Sen. Rand Paul, R-Ky., during last-minute efforts to advance legislation that increased Social Security benefits for certain public pensioners. The bill, the Social Security Fairness Act, was voted into law. However, the proposal to raise the retirement age was struck down. Paul called for raising the retirement age by three months per year until it reached age 70, to reflect current life expectancies. The change would have created nearly $400 billion in savings for the program, while the Social Security Fairness Act added $200 billion in costs to the program over 10 years. Other Republican proposals have likewise called for raising the retirement age. The Social Security Administration faces looming depletion dates for the trust funds it relies on to help pay benefits. To help resolve that issue, lawmakers may consider raising taxes, cutting benefits or a combination of both. Raising the retirement age is effectively a benefit cut. Like the changes enacted in 1983, raising the retirement age could be on the menu. Denmark's move to raise the retirement age to 70 is not a surprise, experts say. In 2023, research published by the Danish Center for Social Science Research found increasing good health and educational resources for 60- to 70-year-olds, along with higher demand for older workers, could point to retirement age increases in the future. In 2025, Denmark residents can retire with public pensions when they are 67. That will gradually increase to age 70 as of 2040. "That means simply that younger people today will have to work longer before they can go on retirement," said Jesper Rangvid, professor of finance at the Copenhagen Business School and co-director of its Pension Research Centre. That retirement age affects everybody entitled to basic public pension income, according to Rangvid. However, those with private pension savings may retire earlier. "There's nothing that prevents you from retiring earlier if you have the funds and the means to do so," Rangvid said. Denmark does offer options for early retirement, including an early pension. However, raising the retirement age conveys a message, Rangvid said. "It sends a signal that this is what the positions would like, that you should work longer," Rangvid said. Retirement experts say raising the U.S. retirement age may not present the same solution for the population that it does in Denmark. Denmark has a much more "equal society" when it comes to income, wealth, education and life expectancy compared to the United States, said Alicia Munnell, senior advisor at the Center for Retirement Research at Boston College. In the U.S., government data shows a stark difference between the life expectancy for those at the bottom and top income quartiles, Munnell said. "When you have such a big, big difference, any across-the-board increase in the retirement age would be foolish," Munnell said. "It'd be immensely harmful to those at the bottom who already receive benefits for a shorter period of time." A policy to raise the retirement age may also be problematic for another reason — it would take time to phase the change in, according to Andrew Biggs, senior fellow at the American Enterprise Institute. For example, Congress may enact a higher retirement age that starts to go into effect in 10 years, and then it would take 30 years for people with the higher retirement age to go through the system. While moving the age from say 67 to 69 would produce savings for the program in the long run, "they're going to need the money right now," Biggs said. The welfare reform that began in Denmark in 2006 — whereby the retirement age increased with life expectancy — has been "extremely important" for the country's economy, according to Rangvid. "We have basically no public debt at all," Rangvid said. In contrast, the U.S. faces high national debt that requires the country to spend more on interest payments than on the military. Budget legislation that is currently under consideration in Congress could add an estimated $3.3 trillion to the debt including interest, according to the Committee for a Responsible Federal Budget. That package would not touch Social Security or its retirement age. However, other proposals have suggested that change, a benefit cut that would be a "pretty powerful lever" toward helping to resolve the program's funding issues, according to Munnell. One proposal scored by the Social Security Administration's actuaries found raising the full retirement age to 70 would eliminate 26% of the program's 75-year shortfall.
