Social Security is increasing the Full Retirement Age over time. For example, if you were born after 1960, your normal retirement age is 67. However, it has not always been like this for all workers.
What is more, there are some experts who claim that raising the age to retire a little more may help Social Security funds. The thing is that not all workers do the same job.
Therefore, while some jobs are not so demanding, others are too much for later retirement. Things may change and it could be advantageous for workers doing tough and exhausting jobs.
How could workers with physically demanding jobs benefit from possible Social Security changes?
Bear in mind that most workers with a job that is physically demanding need to file at 62. Even if they would like to carry on working their job is too tough. This implies getting a cut in their monthly benefits.
Social Security reduces your checks by about 30% per month if you file at 62. not everyone can delay retirement until they are 70. Which would imply collecting 24% extra per month.
In order to sort this problem out, the National Academy of Social Insurance (NASI) has brought a set of measures included in a recent report. This task force group includes people working at home health aides, warehouses, and restaurants.
One of these measures is to create a bridge benefit. Since workers with physically demanding jobs may need to file early, they could help a boost to make up for the Social Security reduction at 62. For instance, if you could get $2,000 in retirement at Full Retirement Age, you could get $1,700 and not $1,400.
How could Social Security could also help workers with physically demanding jobs?
Undoubtedly, the Administration could also increase the minimum payment. By doing so, there will many workers who could cash more money and get some extra financial support every month.
Another possibility could be to allow these workers to work fewer hours. As this measure may affect the company’s turnout, they will receive their money every month.
However, Social Security could let them file and collect part of their retirement benefits. Getting some financial support and continuing at work could be beneficial for everyone.
This could result in another issue. Having a salary and getting retirement benefits before full retirement age may mean getting a reduction. If you exceed the earnings limits, Social Security will reduce your monthly payments. Increasing this limit for these types of workers could be great too.
