Every year the Trustee Report shows that Social Security is going to be depleted by a certain date. Consequently, many changes have been suggested to help save Social Security.
The Washington Post recently invited readers to provide their best ideas on how to fix Social Security.
The two most popular suggestions were to tax higher earnings and to raise the retirement age for Social Security.
Key Take-aways from the Washington Post survey:
- Social Security will need to be reformed in order to avoid depleting the trust fund. Potential reform includes raising the retirement age, increasing the amount of earnings that Social Security taxes are collected on, taxing more of Social Security benefits, means-testing, reducing or eliminating spousal and survivor benefits, and reducing the annual cost of living increase.
- Raising the retirement age was the second most popular choice, behind taxing higher earnings.
- The full retirement age went from 65 to 65 and 2 months in 2003; it will gradually increase to age 67 by the year 2027.
- In 2017, the first wave of Baby Boomers that the higher full retirement age applies to will turn age 62.
- Social Security retirement benefits are reduced for every month you collect them before reaching your full retirement age. The reduction is 25% for a 62-year old taking benefits now, but if the full retirement age is raised to 70 the reduction would be roughly twice as much.
What do you think? Should Congress raise the full retirement age to help keep Social Security from running out of money?