House Republicans are advancing a budget plan that raises the retirement age and cuts benefits, threatening the financial security of millions of Americans.
At a Glance
- The Republican Study Committee’s budget proposes raising the Social Security retirement age to 69.
- The plan would cut benefits by an average of 13% for future retirees.
- Over 250 million Americans could be affected by reduced benefits.
- The proposed cuts would not extend the solvency of the Social Security Trust Fund.
- Democrats have introduced legislation to expand Social Security benefits instead.
Strategic Pivot
The Republican Study Committee (RSC), which includes over 170 House GOP members, has introduced a budget blueprint that proposes sweeping changes to Social Security. Central to the plan is raising the full retirement age from 67 to 69—a shift that would effectively cut benefits by 13% for future retirees, according to a recent Congressional Budget Office analysis.
The RSC’s proposal would potentially impact more than 250 million Americans by modifying eligibility rules and reducing scheduled benefits. Critics argue the changes could force older workers to delay retirement or face significantly diminished income. Despite the drastic cuts, the CBO concluded the plan would not extend the financial solvency of the Social Security Trust Fund, undermining one of the core justifications for the reforms.
Watch a report: House Republicans Propose Social Security Cuts.
Risk and Opportunity
Supporters of the RSC budget argue that rising life expectancy and federal deficits necessitate entitlement reform. However, fiscal experts warn the proposed adjustments would disproportionately affect low- and middle-income retirees, many of whom depend on Social Security for the bulk of their income. The plan’s failure to extend the program’s solvency raises questions about its long-term efficacy, as highlighted in a Democratic budget committee report.
In contrast, Democrats have championed the Social Security Expansion Act, which would increase benefits and fund the program by lifting the payroll tax cap for high earners. Proponents claim this approach would not only preserve benefits but also ensure solvency through 2096 without raising the retirement age.
As the 2024 election cycle intensifies, Social Security reform has become a political litmus test. The starkly different proposals reflect broader ideological divides on fiscal responsibility, generational equity, and the role of government in safeguarding retirement.
The outcome of this legislative battle will reverberate through the lives of millions of current and future retirees.
