A recommendation to help reduce government debt was made recently by Martin Feldstein, chairman of the Council of Economic Advisers under President Ronald Reagan. That recommendation is likely to cause quite a stir among Americans, particularly low-income people who are depending upon their Social Security. The recommendation is to raise the age limit to 70.
Why Raise The Age Limit?
According to Feldstein, it will reduce the annual cost of Social Security benefits by 20 percent. But that's not all. Feldstein is also proposing that the age limit for Medicare benefits also be raised to 70 which, in his opinion, will also help reduce the national debt. Feldstein's reasoning is based on what he refers to as "entitlement reforms." His solution is to "curb the 'entitlement spending' that has helped government debt balloon."
What working Americans will most likely interpret this is postponing what they are entitled to receive after working hard all their lives. Three years may not seem like much, unless you are speaking with older Americans who are already counting on Social Security and Medicare benefits to help support them in their retirement years. Entitlement? You bet!
Age Limit Last Increased in 1983
Congress already raised the age for full Social Security benefits from age 65 to age 67 back in 1983. Feldstein states that it's all right to increase the age limit again, since life expectancy at age 67 has increased by an additional three years. But, you cannot apply that to everyone, especially to those with ongoing health problems.
Raising the age limit may seem like a good idea to Feldstein on paper, but it is not fair to low-income working families who need it. The consequences could be devastating.
