Boosting Social Security Retirement Age

Posted July 12, 2010 in Labor and Employment by Arthur Buono
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Like the cost of a postage stamp, the Social Security retirement age now seems to rise every few years. Lawmakers of both parties may be ready to do it again. As the Miami Herald reports, key members of Congress have floated trial balloons about raising the eligibility age for full retirement benefits to 70.

 
  • A measure to rein in entitlement spending
  • Proposal to affect those born in the 1960s and later
  • 70 the new 67? 

 

Bipartisan Bid to Raise Retirement Age

One of the largest government expenditures, Social Security consists of a package of welfare programs. The retirement benefit makes up one of the three legs of the retirement stool, along with pensions and private savings. Congress first set the retirement age at 62, but increased it when projections showed the program running short of funds.

The basic problem is too many retirees and too few taxpayers. Life expectancy has increased about six years since the program started. This means retirees get benefits longer. More money goes out to more people while fewer people fund the payout.

Ideas to address the shortfall follow a familiar script. Retirement age would remain the same for persons born before 1960. Persons born in 1960 or later would see their retirement age increased from 67 to 70. While these proposals have a way to go, you might start planning now to work a little longer.

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