An Argument Against Raising the Full Retirement Age
Although one of the more popular recurring proposals to address Social Security’s solvency problem calls for increasing the full retirement age (FRA) from it’s current age 67 ceiling, this article by Money and Markets’ Eugene Townes presents an adverse view of this strategy. Townes’ article highlights what he calls “a domino effect of new issues” that could result from this approach, including some that would potentially be detrimental to Social Security overall. On the increases in life expectancy issue, for example, (the Heritage Foundation cites a 17-year increase since Social Security was created) he notes that lower income groups do not necessarily experience the same growth in years.
Townes’ article cites other potential problems, some exacerbated by low savings rates and others related to the further discounting that would be needed to address those drawing benefits at age 62. He goes on to include an alternative to the FRA increase: extending the age for obtaining maximum payout (the benefit subject to Delayed Retirement Credits). Check out his moneyandmarkets.com article here…
As many are aware, the Association of Mature American Citizens (AMAC) has been actively engaged in the battle to craft legislation for a long-term solution to Social Security’s solvency issue. Dating back several years, AMAC has been advocating a legislative framework that would guarantee solvency for generations to come, with relatively minor adjustments and additional program provisions to assist future retirees in preparing for the financial realities of retirement. Most recently, AMAC has put forth an updated version of this framework, “The Social Security Guarantee Act,” a plan that combines the Association’s original platform with selected assumptions taken from legislation introduced by former Representative Sam Johnson (R) of Texas and Representative John Larson (D) of Connecticut to achieve what is the best path to long-term Trust Fund solvency without raising taxes. The AMAC Social Security Guarantee does Learn more about the “The Social Security Guarantee Act of 2017” by vising AMAC’s website.