The following three proposals constitute just one possible approach that, over time, will put you and me in control of planning and saving for our retirements:
1. Increase the Social Security retirement age
Increase the Social Security retirement age 1 year every 3 years until reaching the average life expectancy (currently around 78–79 years), bringing it back to the original intent when the program first was implemented in the 1930s. Today’s 67 would become 68 in three years, 69 in six years, etc. The entire range of Social Security collection options from early (age 62) to late (age 70) would be adjusted accordingly. (A similar approach23 was part of the solution back in 1983 when Social Security last time was on the brink of insolvency.)
2. Reduce benefits
Reduce benefits from a certain cutoff date, allowing everyone who is, say, age 50 and above to collect in full once reaching the retirement age as calculated above. For everyone younger than 50, reduce benefits by, for example, 2.5% per year of age under 50. If you’re 49 at the cutoff date, you’ll collect 97.5% when reaching full retirement age; if age 48, 95%; if 40, 75%, and so on. That will allow for plenty of time to save up for retirement for those younger than 50.
3. Reduce Social Security taxes
Reduce Social Security taxes gradually to zero after all current liabilities have been funded (assuming the above gradual dismantling).
Think Right or Wrong, Not Left or Right 