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Sun Dec 30, 2012, 05:23 PM

What do you guys think about this proposal re. SS?

I had this idea while responding to another thread on this forum, and I wanted to throw it out there, because I have not seen it proposed but think it's something liberals and conservatives might be able to live with.

What if we raise the SS retirement age to 70, or even 75, but only for those who continue working and earning a comfortable salary (say, $75,000). Since SS was designed to be a retirement income replacement program, there is really no reason why people who continue working and earning a reasonably comfortable salary need to receive Social Security. Nobody would be forced to work until 70, but those who choose to arguably do not need to start receiving Social Security until they retire. It could be set up in such a way that people could start immediately receiving benefits after sending to the Social Security Administration some sort of proof of termination of employment (whether voluntary or involuntary).

I would also apply the higher eligibility age to those who have high levels of unearned income, but make the threshold higher for unearned income to avoid penalizing those who are forced to draw down their 401(k) when they reach a certain age unless they have a very large 401(k).

I know that currently, you get higher benefits if you wait until 70 to collect. I would leave that in place but would not add additional bonuses for waiting until 75, because SS was designed to provide retirement income replacement and those who are not retired arguably do not need income replacement, especially if they earn a decent salary.

This would also have the effect of incentivizing some older workers to retire and free up jobs for younger people. And it would save the system money without turning it into a welfare program, since everyone would get benefits in proportion to what they paid once they turn 75, and everyone would have the option to retire and collect earlier than that without penalty.

FWIW, I also support raising the cap, but I think this might be an additional proposal worth considering, as it might be more politically palpable than raising or eliminating the cap and it is arguably truer to the purposes of SS.


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Reply What do you guys think about this proposal re. SS? (Original post)
democrattotheend Dec 2012 OP
democrattotheend Dec 2012 #1

Response to democrattotheend (Original post)

Sun Dec 30, 2012, 05:53 PM

1. Anyone?

I know this thread doesn't attack the president or argue that he's a saint above all criticism, but I am curious what people think of my proposal.

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