By Increasing the retirement age is one option to begin to address the program’s shortfall, although a better reform would allow younger workers to choose to divert some of their payroll taxes into some form of personal accounts.
Our work is never over
The Conservatives Advocating Thick-witted Options Institute took a squint at the National Bureau of Economic Research’s working paper for phase seven of its international social security project.
In this volume we ask: are individuals healthy enough to increase their labor supply at older ages?
According to our results, which haven’t been peer-reviewed, people are living longer and are healthy enough to work longer, but a number of factors should be – [CATO snatches mic]
♥ Study Finds Older Americans Have Significant Capacity to Work More Underscoring the Need for Social Security Reform ♥
But fear not person looking forward to retirement! There’s another solution that will allow you to retire before 80! Maybe!
Where it will be easier for the same criminals who “misplaced” mom and dad’s pension funds to get at them. But two speakers of the house and one president think its a great idea, so no worries, right?
Without significant changes, Social Security will be unable to pay all scheduled benefits long before today’s young workers get close to retirement age.
Which will be 75, if Cato has its way!
Absent reform, this shortfall will require significant tax increases or benefit cuts, and it only gets worse the longer policymakers delay. Due to welcome gains in life expectancy and other health improvements, older Americans can work more, and this should be considered when crafting reform proposals.
Same chicken, different position, and the only thing that will really get them off is eradicating Social Security.
