This Solution Could Help Reduce Social Security's Financial Shortfall. But Will It Change Your Retirement Plans for the Worse?
Social Security is facing a financial shortfall. There's really no way to sugarcoat it. In the coming years, it expects to spend more on benefits than what it takes in thanks to the large number of baby boomers existing the workforce.
Thankfully, Social Security has trust funds it can tap to make up its revenue shortfall. But once those trust funds are depleted, benefit cuts will be on the table unless lawmakers manage to come up with a fix.
Now there are different solutions that have been introduced along those lines, and one is to raise full retirement age (FRA), which is when filers are entitled to their monthly benefits without a reduction. Currently, FRA is 67 for anyone born in 1960 or later, but lawmakers have suggested pushing it back to 68. Doing so could eliminate 14% of Social Security's projected shortfall, according to the University of Maryland's Program for Public Consultation.
Source Fool.com
