Will Mike Bloomberg raise the Social Security age?
The former New York City mayor says he isn’t opposed to the idea – but there’s one big obstacle
Presidential candidate and former New York City Mayor Mike Bloomberg discusses Amazon and how the retail industry is changing with new companies like The RealReal and Rent The Runway during a Fox News Town Hall.
Former New York City Mayor Michael Bloomberg said changes are going to have to be made to Social Security in order to make sure it remains funded – but, politically, some of the alternative options just aren’t viable.
“We’re going to have to put more money into Social Security and not just fund it the way it’s been funded now, at the rate things are going,” Bloomberg said during a Fox News town hall on Monday.
Bolstering the program has been a focus on Capitol Hill as 10,000 baby boomers turn age 65 each day in the U.S. and funding is running low. Social Security’s reserve funds are expected to be depleted in 2035, at which time the program will no longer be able to pay out benefits in full.
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In order to address that pending shortfall, it has been proposed that the government either cut back Social Security benefits or raise the age at which people can begin collecting Social Security.
Bloomberg, however, said it’s “ridiculous to think given the politics” involved that the U.S. is ever going to be able to execute on either option.
He did say, however, that there is a case to be made for raising the age – since people are living longer – but emphasized that, politically, it’s “not going to happen.”
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Bloomberg’s Democratic competitors have largely proposed expanding the popular program. Independent Vermont Sen. Bernie Sanders, for example, has advocated for expanding benefits – and raising them for low-income seniors. In order to do so, he would lift the cap on maximum taxable earnings. Former Vice President Joe Biden also proposed strengthening benefits for the most vulnerable older populations – and asking high-earning Americans to pay more in taxes.
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The full retirement age is scheduled to increase to 67 by 2022. Taking benefits before an individual reaches their “full retirement age” reduces benefits based on the number of months early they are claimed. For example, an individual with a full retirement age older than 66 could see his or her benefits reduced by as much as 30 percent if he or she were to claim upon eligibility at 62.
The factors that determine the maximum benefit an individual can receive include work history, age, benefits start date and marital status.