OPINION:
A recent Social Security insurance report predicts that the trust fund used to pay full benefits will be broke by 2034 (“Social Security to go broke in 10 years, forcing Washington’s hand on retiree crisis,” web, Feb. 20).
Medicare will do the same by 2031. After those dates are reached, benefits under both Social Security and Medicare recipients may have to be cut.
The Congressional Budget Office report suggests immediately raising the combined payroll tax withholdings for both employees and employers by 3.4%. This would increase it from the current 12.4% to 15.84% and would be a disaster for both employees and employers given the current rate of inflation.
I have a better alternative to keeping both Social Security and Medicare solvent for decades. Raise retirement-age eligibility by one month each year starting in 2024 over the next 12 years. So in 2036, you would have to be 63 years old to start collecting, 67.5 to get full benefits and 73 to receive maximum benefits. The current payroll withholding tax is 6.2% each for employees and employers, for a total of 12.4%. Starting in 2024, raise each by .05%. Within 10 years, the total payroll withholdings will be 13.4%.
Both these actions should preserve financial solvency for Social Security and Medicare. As a majority of Americans continue to live longer, this is the best deal for all.
LARRY PENNER
Great Neck, New York
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