Social Security Facts - #13:
AGE OF ELEGIBILITY!
Given that Social Security is simply a transfer of wealth from the young (workers) to the old (retirees), a pay-as-you-go system that has been sold for seven decades as an insurance program with assets (of which there are none), then the age of elegibility is the third most obvious change!
As mentioned in Social Security Facts - #10, lifespan has increased about 10 years since Social Security began. Some adjustments have been made, but not as significant as they should be.
I suggest that we move the age of elegibility to 70 years of age for all entrants to the workforce immediately. This is 1/2 of the lifespan increase and seems reasonable in light of the fact that people in general are working later into life. For people now in the workforce, we should continue to phase in increases in the age of elegibility so in 5 decades (2055) you do not receive full benefits until age 70. Some facility for early payment (65?) of reduced benefits could still be kept.
And we should also keep adjusting this age of elegibilty into the future as lifespan and workhabits change. Perhaps his analysis should be added to the agenda of the economists suggested in Social Security Facts - #12.
I suggest that the modifications of MEANS TESTING, INDEXING AND AGE OF ELEGIBILITY somewhat along the lines that I have suggested in my last three posts would adjust the cost of the Social Security Program so that along with the personal accounts being suggested would relieve the crisis we are facing.
Any other ideas?
Given that Social Security is simply a transfer of wealth from the young (workers) to the old (retirees), a pay-as-you-go system that has been sold for seven decades as an insurance program with assets (of which there are none), then the age of elegibility is the third most obvious change!
As mentioned in Social Security Facts - #10, lifespan has increased about 10 years since Social Security began. Some adjustments have been made, but not as significant as they should be.
I suggest that we move the age of elegibility to 70 years of age for all entrants to the workforce immediately. This is 1/2 of the lifespan increase and seems reasonable in light of the fact that people in general are working later into life. For people now in the workforce, we should continue to phase in increases in the age of elegibility so in 5 decades (2055) you do not receive full benefits until age 70. Some facility for early payment (65?) of reduced benefits could still be kept.
And we should also keep adjusting this age of elegibilty into the future as lifespan and workhabits change. Perhaps his analysis should be added to the agenda of the economists suggested in Social Security Facts - #12.
I suggest that the modifications of MEANS TESTING, INDEXING AND AGE OF ELEGIBILITY somewhat along the lines that I have suggested in my last three posts would adjust the cost of the Social Security Program so that along with the personal accounts being suggested would relieve the crisis we are facing.
Any other ideas?
posted by Jim | 9:22 AM
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