The traditional retirement age, that most people recognize as being the norm, is the age of 65. While this government has decided to increase the age ever so slightly for those that desire to receive their full benefits from the Social Security Administration that are owed to them to age 67; the bottom line, is that age 65, is still basically seen by most people as being the normal or target age to retire.
The problem, though, for many a senior citizen, is that whether or not they so desire to retire, is dependent upon their financial situation, and more and more senior citizens, are finding that despite whatever aid their government is providing to them in their twilight years, that such is not actually beneficial enough for them to prudently stop working. In fact, we read at ngpr.org/blog that as of the 2020 census, a surprisingly high total of 26.6% of those aged 65-74 are still employed, at least on a part time basis. Yet, despite their advanced age, these elder employees are still required to pay their normal share of their Federal Insurance Contributions Act (FICA) which is a payroll tax of 7.65% so paid by the employee as well as being matched by the employer, so of.
In consideration, then, that Social Security was created to provide a safety net for our senior citizens, it then doesn’t seem right or fair, that those that actually are in their senior years, should still be compelled by law, to pay into FICA, when they have already reached the traditional retirement age of 65. Rather, it makes for common sense, that all those that are age 65 and above, who are still laboring for a living, should not have to pay any additional monies into FICA, and therefore the employers of these senior citizens, should also not have to make their corresponding contribution to such, either.
In fairness to all those that have reached their retirement age, this government, should by all means, get off of the back of those that have already devoted their best years to working, and should make it then, public policy, that as not only a courtesy to these elder citizens, but also in consideration that our governance owes these elders the responsibility to do the right thing for them, would thus no longer mandate that senior citizens pay into FICA. One would think, then, that most people, young as well as old, would not have an issue with this appropriate change; but assuming that there was some general debate about such, the FICA act could be amended to reflect that those that are age 65 and older, and also making less than $50,000 a year, would not pay into FICA, whatsoever; but those others that at their advanced age who were still excellent wage earners, would thus be subject to FICA taxation per the normal rules of such, once their income reached $50,000, and would subsequently end their FICA contributions, only when their income thereby reached the current legislated wage cap amount.
In short, the current compulsory payment into FICA, for those that have reached the normal retirement age, and yet are still working, should be eliminated or significantly amended.