Saving Social Security: The Arguments Are Mounting - ThinkAdvisor
In an interesting article appearing recently on ThinkAdvisor.com, Senior Reporter John Manganaro offers a broad assessment of emerging views on the potential direction of Social Security reform measures. Manganaro begins with an analysis of the debate on the pros and cons of setbacks in the full retirement age (FRA) for earned benefits and follows that up with viewpoints on the appropriateness of tax increases as a path to resolution, concluding his piece with perspectives on the need for further means-testing as an approach to better targeting Social Security benefits.
On the FRA setback issue, Manganaro highlights comments from a recent analysis from Morningstar that calls into question the ability of many workers in physically demanding jobs to remain in the workforce beyond current FRA (67), supporting this with the observation that “most workers today don’t get anywhere close” to deferring their full benefit claim to age 70.
Regarding the issue of taxes, Manganaro reviews comments from the National Committee to Preserve Social Security and Medicare and the Social Security Works lobbying group in which tax increases–primarily removal of the taxable earnings limit–are advocated as a way to avoid changing the FRA. He follows this with a discussion of remarks by Cato Institute’s Romina Boccia challenging Social Security’s premise of “universal coverage” and calling for additional means-testing to be built into the program’s benefits formulas.
Many thought-provoking comments are highlighted in the post, which you can access here. Perhaps the most telling, though, is the suggestion that while the debate continues, “… few anticipate a solution will be struck in the current, divided Congress.”