In a new brief, retirement expert Alicia Munnell of Boston College’s Center for Retirement Research argues that Social Security’s “delayed retirement credit” effectively has bumped up the retirement age to 70. That credit, originally enacted in 1972, has grown more generous over the years. It now raises Social Security retirement benefits at full retirement age up to 8% a year until age 70, meaning monthly benefits are lower for people who claim the benefits earlier.
Rising deductions from Social Security checks for Medicare Part B premiums, along with higher taxes on benefits, have reduced Social Security’s ability to replace preretirement income, Munnell says. Meanwhile, the shift to age 70 “should be feasible” for many workers given increased lifespans, health and education, she says.
Still, “vulnerable” workers forced to claim early will have low benefits and be harmed by further cuts.
What do you think? Is 70 the new 65?