Social Security

Actually, Raising the Retirement Age Is Not Regressive

Some commentators have suggested that raising the retirement age would be regressive given that lower income recipients tend to have a lower life expectancy than middle and higher income recipients (and therefore spend fewer years collecting benefits.) But a look at the data

Social Security Adjustments Announced Today

With the release of September inflation numbers from the Bureau of Labor Statistics, the Social Security Administration also announced its cost-of-living adjustments (COLA) and change to the maximum amount of income to which the payroll tax is applied. The COLA for Social Security benefits next year will be a 1.7 percent increase, while the taxable maximum will rise from $110,100 to $113,700.

Blahous: "The End of Social Security Self-Financing"

The Mercatus Center has released a new paper by Social Security Trustee Charles Blahous entitled "The End of Social Security Self-Financing." In the paper and an accompanying article, Blahous writes of the challenges faced by Social Security in continuing to finance its benefits with revenues from the payroll tax.

Would Raising the Retirement Age Crowd Out Young Workers?

One of the criticisms of raising the retirement age is the belief that older workers delaying retirement may "crowd out" younger workers and cause higher youth unemployment. This theory, also known as the "lump of labor theory," is challenged in a new paper by Alicia Munnell and April Wu of the Center for Retirement Research at Boston College.

Blahous: The Longer We Wait, the More Difficult It Is to Fix Social Security

Social Security trustee Charles Blahous has a interesting new commentary on the long-run sustainability of the Social Security program. The combined Social Security (OASDI) trust fund is due to be exhausted by 2033, but that measure, Blahous claims, gives the mistaken impression that we still have time to wait to make changes.

AP's Ohlemacher Presents Social Security Options

Last week, Social Security celebrated its 77th birthday. But with the surplus in the trust fund due to be exhausted by 2033, its next 77 years face uncertainty. Yesterday, Stephen Ohlemacher of the Associated Press wrote a fantastic piece on the possible fixes for Social Security.

For Its 77th Birthday, Let’s Give Social Security Another 77 years

Seventy seven years ago today, the Social Security Act was signed into law. Over the life of the program, it has provided generations of Americans support and security once they reach retirement or if they are disabled. Unfortunately, no matter how you look at it, Social Security is now in dire need of reform. Every year, the Social Security Trustees warn us that changes need to be implemented as soon as possible in order to keep the program solvent.

AARP Event Discusses Population Aging Across the Globe

The American Association of Retired Persons (AARP) hosted an event entitled "Work, Retirement Age, and Fiscal Sustainability in an Aging World." Two professionals in the field of pension public policy and fiscal sustainability led the discussion, providing an international perspective on the difficulty that population aging is posing for budgets across the world.

Debating Social Security Fixes

The AARP has just released a helpful new paper considering the pros and cons of different options to reform Social Security. Our fiscal outlook in the long run shows that the Social Security program is in need of change, but how to best address the issue remains up for debate.

The Drivers: Health Care Cost Growth and Population Aging

In our recent analysis of CBO's Long-Term Budget Outlook, we elaborated on how the overall federal debt is on an unsustainable path. Just twelve years from now, under CBO’s Alternative Fiscal Scenario (AFS), debt will surpass 100 percent of GDP, and by 2038, it will exceed 200 percent. Driving this debt growth are the increasing costs of Social Security and especially Medicare and Medicaid.

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