Today News

‘They should plan to raise retirement age’: Nikki Haley said at recent Republican debate she wants to raise retirement age above 67 – should you be worried?

‘They should plan to raise retirement age’: Nikki Haley said at recent Republican debate she wants to raise retirement age above 67 – should you be worried?

The first Republican presidential primary debate of 2024 showcased a stark divide among Donald Trump’s challengers: Social Security.

Former South Carolina Governor Nikki Haley Keep Throughout the campaign, she was open to raising the retirement age for young people.

do not miss it

During the Jan. 10 debate, moderator Jake Tapper asked Haley point-blank whether people in their 20s should expect to work into their 70s.

“They should plan to raise the retirement age, yes,” Haley explain.

Haley’s opponent, the governor of Florida. Ron DeSantisStrongly opposed her view of raising the retirement age, noting that retirees have paid into Social Security their entire lives and deserve it.

“This is not a welfare program where you pay taxes your whole life,” he said.

What’s behind Haley and DeSantis’ views on social safety? Should you be worried if either of them wins the Republican nomination?

Why is Haley raising her retirement age?

Haley assures current and soon-to-retirees that they will receive full Social Security rights now retirement age 67 years old. But she remains coy amid debate over the exact age she will increase her age to.

“We want to make sure that everyone who’s promised it gets it,” she said, “but we also want to make sure that our kids get something when they get it.”

Haley’s announcement comes in light of the fact that Social Security may not be able to issue full benefits in the near future.According to this year’s report Social Security and Medicare Trustees Reportfund support safe society Under current funding levels, only 100% of “scheduled benefits through 2033” can be paid. After that, the funds will “run out” and senior Americans will only receive 77% of the total scheduled benefits.

DeSantis’ view

DeSantis disagreed with Haley that a big reason for raising the retirement age is life expectancy. Haley insists life expectancy is increasing, so raising the retirement age makes sense. But DeSantis said that’s not the case: Life expectancy has improved. It has declined over the past five years.

“I would never raise the retirement age in the face of declining life expectancy,” DeSantis said during the debate. “It’s going to hurt the blue-collar class. You’re paying taxes your whole life, your life expectancy is declining, and you may not even get back a lot of your benefits.”

To some extent, both are correct. Longer lifespans tend to go to wealthy Americans like Haley and DeSantis. Poorer Americans tend not to see the same increases in life expectancy as wealthier Americans, according to a 2021 report. Paper From the Congressional Research Service.

read more: Faced with rising interest rates, millions of Americans are saddled with massive debt.The following is How to get out of debt this month

but something needs to be done

Haley is not wrong to sound the alarm about Social Security’s impending bankruptcy.Even current benefits often not enough Many elderly people can continue to live.

But some critics have other ideas about improving Social Security’s finances.Nobel Prize winner and economist Paul Kluman wrote A recent New York Times op-ed argued that the best way to increase Social Security funding is to do what most Republican candidates refuse to do: raise taxes.

Statistically, the United States has one of the lowest tax rates in the world OECDRaising taxes is what countries like Canada do Denmark Provide more health care and financial support for retirees. You may not like higher taxes, but it can help you save for retirement in the long run.

In the meantime, the best thing you can do is make sure you have enough money in the bank Fund your retirement.

What to read next

This article provides information only and should not be considered advice. This article is provided without warranty of any kind.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button