- Older adults in physically demanding jobs face unique challenges in retirement.
- Policy safeguards can help improve financial security, the report found.
Turner worker working with drill bits in workshop
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The Social Security retirement age has now moved to 67, and some lawmakers are calling for it to be raised even further.
But it can be a problem for certain cohorts: older workers in physically demanding jobs, the government’s recent task force report said. National Society of Social Insurance.
“It would be highly irresponsible to raise the retirement age even further before we understand the harm that the increases that have already occurred have done to this group and other groups of workers,” he said. Member Rebecca Vallas said this week during a presentation on the report’s findings.
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Social Security reform passed in 1983 included a gradual increase to full retirement age at which retirees could receive 100% of their earned benefits. Currently, for people born after 1960, the full retirement age is 67 years old, and the retirement age is gradually introduced from 65 years old.
When it comes to claiming Social Security retirement benefits, it’s generally advised to delay as much as possible to get larger benefits.
However, workers who do physically demanding jobs, Maybe I can’t wait.
“Some jobs held by older workers may not allow you to do well past the early age of 62,” said Joel Eskovitz, director of Social Security and Savings at AARP’s Public Policy Institute. There are a lot of jobs that you can’t expect.” The member of the unit who prepared the report.
If these workers apply for benefits early, they may find that their reduced monthly checks don’t provide the income they need. Additionally, these workers often do not have significant retirement savings due to low wages and lack of access to employer retirement plans and pensions.
It is estimated that more than 10 million older workers face physical strain at work. National Society of Social Insurancetask force report. This includes people who work in warehouses, restaurants, or as home health aides.
“The task force unanimously agreed that raising the retirement age would only further harm an already economically vulnerable working class,” Barras said.
Instead, the group proposed a number of policy changes that could help. The task force said this includes changes to four social security benefits that could help vulnerable populations as they age.
Bridging Social Security benefits may help workers who are unable to work until full retirement age but cannot claim Social Security disability benefits.
Bridging benefits begin at age 62, when the claimant first becomes eligible for retirement benefits, and continue until age 67 or full retirement age. The plaintiffs will receive half of the difference between their full retirement age and the amount they would receive at age 62.
For example, a person who receives a $1,000 monthly Social Security benefit at full retirement age and is eligible for a reduced benefit of $700 at age 62 would instead receive a bridging benefit at age 62, Eskovitz said. As a result, you can receive up to $850. The bridging benefit would be recalculated annually until full retirement age, when the worker begins receiving full benefits.
To qualify, workers must be performing physically demanding tasks. Those who have worked in the most physically demanding jobs can earn the qualification at age 62, but it becomes progressively easier to obtain the qualification as you get older.
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Long-term low-wage workers who do not receive sufficient retirement benefits may be eligible for something called special minimum benefits.
However, because these benefits are adjusted differently, they grow more slowly than regular benefits. According to the task force, increasing the minimum benefit amount would help.
Lawmakers are also paying attention to this change. Congressman John Larson (D-Conn.) said at a recent AARP event that one of the proposals in Congress, the Social Security 2100 Act, would lift an estimated 5 million people out of poverty by increasing minimum benefits. Stated.
Some older workers continue to work but reduce their working hours as they get older.
Allowing these workers to claim a portion of their early retirement benefits could help replace lost income, while also limiting penalties for claiming before full retirement age. Study finds that combining partial early retirement benefits with the ability to turn checks on and off could improve retirement security for millions of Americans, according to report That’s what it means.
People who claim Social Security retirement benefits before reaching full retirement age and continue to work may be subject to a means test.
In 2024, it will apply to incomes above $22,320 per year, up from $21,240 in 2023. For every $2 over that limit, $1 in benefits will be deducted. (Higher limits apply in the year you reach retirement age.)
Importantly, the benefits that are withheld while the beneficiary is working are: later added to monthly check Once they reach full retirement age.
The report says means tests can be a disincentive to work and are often misunderstood.
Revamping the means test could help bring the U.S. into line with other countries that reduce annual retirement income by working less, the report says.
The National Academy of Social Insurance’s report points to other measures that could help workers in physically demanding jobs, including Social Security disability benefit reform, strengthening Social Security Administration services, and improving other programs and administrations. It also emphasizes policy changes.
Notably, this includes the idea of eliminating the reconsideration stage of the appeals process for Social Security disability benefits.
“This is something that really got a lot of attention in the revenue hearings last week, and it actually got a lot of bipartisan attention. That was pretty great to hear,” Vallas said. .
Other changes proposed in the report include providing employment and training programs for older workers and increasing the unemployment insurance coverage available to them.