Adjusting the FRA is the one agreed upon method of handling rising social security benefit costs in the
past. Most likely, this will continue into the future. Exploring in detail will reveal exactly how the numbers
should play out.
Increasing the FRA and, as a result, decreasing the number of years on average that recipients receive
benefits is a way of managing longevity. Another strategy could involve changing the way benefits are
calculated so that recipients would still be eligible for their standard benefit at the same FRA, but their
monthly payments are smaller.
Social Security income replacement will differ based on what you made when you were working. For
example, for someone earning $24,191, Social Security will replace 53% of their income, for someone
earning $53,757, it will replace 40%, and for someone earning $132,048, it will replace 26%. But no
matter how much Social Security will make up of your previous income, you may need more money
saved as a result of this type of change.
Cutting expenses by creating a budget and reducing discretionary spending is one way you can find
money to save.