Yes, it’s time to change the full retirement age for Social Security.
Also a small percent reduction in amount paid for those who have significant income.
The origin of Social Security was not as a pension, but as a minimum supplement. It was never intended as a full pension. Persons should build their own pension with Social Security as a supplement.
Example: If average household income is $65,000 annually, those between $50 and $80,000 would get full benefits. Those between $80,000 and $110,000 would receive 95 percent of their benefits. Between $110,000 and $150,000 would get 90 percent of their benefits and continue this extension for higher incomes. Remember, the program was structured as a supplement, not a full pension. At some point those in the upper tax brackets say $300,000 would not receive benefits. Keep in mind the program structure was as a supplement for those with need, not a wealth supplement.
Just as a point of reference, I would receive only a percentage of my benefit, based on household income, so we would be impacted.
This would help ensure the solvency of the Social Security program.
Another change that could be made would change the percentages for early retirement.
When the program was 65 with early at 62, the total penalty at 62 was 20 percent, with equal percentages of 6.67 percent each year. Restructure, so at 64 a 6 percent reduction, at 63 a 13 percent and at 62 a 21 percent reduction. Always make the reductions for earlier retirement higher than later retirement, regardless of the structure. Make the retirement structure from early at 65 and full at 70.
All of these changes would help maintain the solvency and bring the program more in line with its original structure as a supplement.
Carl Hohenberger is a resident of The Villages.