Friday, November 12, 2010

Social Security Cuts?

The bi-partisan deficit reduction report is getting a lot of play, especially the part about cutting Social Security and Medicare. As someone on the precipice of Medicare (but not Social Security) I can identify with the backlash.

So why am I close to Medicare eligibility but not Social Security?

Because in 1983 Social Security benefits were amended to cut benefits for people born after 1937. The amended act also increased Social Security tax rates, established an earnings test which has the effect of reducing Social Security benefits for those with post-retirement income, and proposed a number of "fixes" to keep Social Security solvent.

So much for that move . . .

But the important point is, advancing the age at which full Social Security benefits can be collected is not new. This was implemented 27 years ago!

This Social Security calculator illustrates how the 1983 change impacted the gray panthers. You can also see how early or delayed benefits can impact your monthly check.

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