A new proposal has been drafted that is meant to reduce the debt in the United States by almost $4 trillion. Many of the measures are controversial, as the legislation would cut some benefits of Social Security and raise the retirement age to 69, The New York Times reports.
The cost of living adjustment feature that helps adjust Social Security payments for inflation would be reduced. Additionally, many would
experience other cuts, although the bill will help retirees with lower incomes.
Another article in The New York Times suggests that these cuts will heavily affect the middle class, who won't be able as able to finance themselves in retirement as those with higher income.
Retirement age would also be very slowly increased, so that, by 2075, it is 69 instead of 67.
This may make it all the more important to start finding ways to prepare for retirement and cut costs.
Ron Lieber of The New York Times recently told MarketPlace.org that longterm care insurance is one way older adults can save for skilled nursing care that may help them lead healthier lives in their golden years.