Market Data 
- House Republicans proposed raising the age for receiving Social Security benefits.
- Social Security benefits are already facing funding issues over the next decade.
- The proposed change has sparked criticism from both Democrats and some Republicans.
House Republicans have a plan to raise the age at which Americans receive Social Security benefits — and the agency’s leader isn’t on board.
Earlier this week, the Republican Study Committee unveiled their fiscal year 2025 budget proposal — called Fiscal Sanity to Save America — which consisted of nearly 200 pages of funding priorities for key issues, including taxes, higher education, and healthcare.
The budget also addressed an issue that has long been contentious across both parties: Social Security. According to the proposal, the committee wants to “make modest adjustments to the retirement age for future retirees to account for increases in life expectancy.” The proposal did not specify the exact age they’re eyeing for Americans to receive their benefits, but it would likely be above the current threshold of 67 years old.
The committee’s chairman Kevin Hern emphasized in the budget that “we cannot be clearer: we WILL NOT adjust or delay retirement benefits for any senior in or near retirement.”
Still, the proposal has some administration officials concerned for future retirees. During a House Ways and Means Committee hearing on Thursday, Social Security Commissioner Martin O’Malley said that “we have to be mindful of people who really do hard work, hard labor, their whole lives, and who die sooner than those of us who are privileged enough to do work that is not as taxing on our bodies and our physical well-being.”
Full Social Security benefits are already in jeopardy over the next decade. In March 2023, the Social Security and Medicare Board of Trustees estimated that the Old-Age and Survivors Insurance (OASI) Trust Fund might only be able to pay out full benefits over the next decade, which is earlier than anticipated.
“My dad had an expression, ‘Don’t tell me what you value. Show me your budget, and I’ll tell you what you value.’ The Republican Study Committee budget shows what Republicans value,” President Biden said in a statement on the RSC budget. “This extreme budget will cut Medicare, Social Security, and the Affordable Care Act. It endorses a national abortion ban. The Republican budget will raise housing costs and prescription drugs costs for families. And it will shower giveaways on the wealthy and biggest corporations. Let me be clear: I will stop them.”
Even some Republican lawmakers have been critical of the House’s budget proposal. GOP Sen. Josh Hawley called the plan “the stupidest thing I ever heard,” according to The Hill, and GOP Sen. Mitt Romney warned his House colleagues of the consequences of putting forth this plan during an election year.
“Talk about a gift to the Democrats,” Romney said. “Seems like people have lost their political ear if they think any adjustments to the benefits of Social Security makes sense to talk about at any time, let alone during an election year.”
Retirement is already looking bleak for some seniors, who are facing lower incomes and high healthcare and housing costs. A little over half of Americans over the age of 65 are earning under $30,000 a year, according to Census Bureau’s Current Population Survey. And for many Americans, Social Security is a financial lifeline in their later years. Among typical retirees, just under 80% say Social Security is a source of income — a far greater share than retirement savings or wages.
Biden said that his “budget represents a different future,” one where “we protect Social Security so the working people who built this country can retire with dignity.”
“I see a future for all Americans and I will never stop fighting for that future,” he said.
