For thousands of Americans, the new Social Security Fairness Act in the US looks to be good news, since their payments under the Administration would grow. However, recipients of this new aid would experience severe delays in obtaining their payments because this process might take up to a year.
The Social Security Administration claims that it lacks the funding necessary to make the changes without having a detrimental impact on day-to-day client service. Therefore, this institution suggests that an employment freeze put in place in November 2024 further hinders this new strategy.
On January 5, former President Joe Biden signed the Social Security Fairness Act into law, eliminating two long-standing clauses: government pension offsets and disdain for windfall earnings.
Millions of Americans were previously prohibited from getting Social Security payments under these provisions if they were also qualified for a pension or retirement plan offered by their employer. Public sector workers like teachers, firefighters, and police officers were the main targets of this new law.
New retirement age in the United States by 2025
Another significant difficulty facing American organizations tasked with handling these issues is retirement. Indeed, the Congressional Budget Office calculated that the more than two million Americans impacted by the Windfall Elimination Provision would receive an average increase in monthly benefits of $360 if the provision were repealed.
For its part, the CBO calculated that for about 380,000 spouses of dead Social Security recipients, eliminating the Government Pension Offset provision would result in an average increase in monthly payments of $700.
Similarly, if a provision cut or eliminated Social Security benefits for another 390,000 spouses, they were estimated to get an additional $1,190 per month. The Social Security Trust Funds, which are in danger of going bankrupt, are anticipated to be further burdened by the extra payments.
As a result, pensioners in the US will experience major changes in 2025, especially with regard to Social Security benefits and retirement age. Those who are already receiving benefits as well as those who are approaching retirement will be impacted by these changes.
Even while you can start receiving benefits at age 62, if you do so before you reach full retirement age, your monthly payments will be permanently reduced.
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In 2025, the full retirement age will be
66 years and 8 months
for people born in 1958 and the first two months of 1959. -
Born in 1960 or later:
this group will reach full retirement age at 67.
Therefore, the Social Security Administration (SSA) states that your pension will grow for each year you delay retirement past full retirement age. One smart way to increase monthly payments is to postpone retirement.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.