Social Security reforms are being considered that could impact high-income retirees, potentially cutting off payments to those earning over $250,000 annually. The retirement age is also expected to increase, with full benefits eligibility possibly reaching 70 years old.
According to experts, without reforms, Social Security funds could be depleted by 2035, forcing difficult choices between benefit cuts and tax increases. Some solutions being discussed include income-based benefit reductions or excluding high-income earners from receiving benefits.
One expert explained that the current ratio of workers supporting retirees is already unsustainable at 35:1, and increasing the retirement age may not be enough to address the issue. Another proposal involves cutting off benefits for individuals earning above a certain threshold, even if they have paid into the system.
The proposed reforms are expected to have significant implications for high-income earners, who may no longer receive full Social Security benefits or may face reduced payments. As the debate around these reforms continues, it’s essential for Americans to understand their potential impact and plan accordingly.
It’s worth noting that other experts recommend exploring alternative solutions, such as increasing premiums or implementing a more sustainable funding model. However, any changes to Social Security will likely be contentious and could lead to further debates about the role of government in providing retirement benefits.
Source: https://247wallst.com/investing/2025/02/15/if-youre-approaching-retirement-age-and-somewhat-wealthy-there-is-a-good-chance-your-social-security-benefits-are-cut