Social Security is facing a funding crisis that could impact millions of American seniors in the coming years. The Social Security Administration (SSA) has warned that the trust funds supporting the program are set to run out by 2035 unless action is taken to maintain their solvency. Rachel Greszler, a senior research fellow at the Heritage Foundation, has proposed raising the retirement age to 70 to address this issue.
She argues that increased life expectancies, improved healthcare, and the shift away from physically demanding work mean that many older Americans can now stay in the workforce longer. Greszler suggests gradually raising the average retirement age from 67 to 69 or 70, with an incremental increase of one or two months each year, tied to life expectancy. She believes this could help stabilize Social Security’s finances and provide additional benefits, such as the wisdom and experience that older workers can offer younger colleagues.
Social Security funding challenges debated
However, not all experts agree with this proposal. Stephen Kates, a principal financial analyst with RetireGuide.com, describes raising the age of eligibility as “a backward way of reducing benefits.” He points out that increasing the earliest eligibility age of 62 or the full retirement age of 67 would mean smaller and delayed benefits for future retirees.
The Center on Budget and Policy Priorities (CBPP) has also stated that raising the retirement age for Social Security would reduce benefits by an amount similar to the projected benefit cuts expected in the 2030s if no legislative action is taken. Zachary Pleat, a senior researcher at Media Matters, expresses concern over the Heritage Foundation’s proposal, tying it to a broader political agenda known as Project 2025. This initiative, led by the Heritage Foundation, aims to prepare a conservative coalition for a future administration starting in January 2025.
As the debate over Social Security’s future continues, it remains to be seen what steps will be taken to address the program’s funding challenges and ensure its long-term sustainability for the millions of Americans who rely on it.
