I think first and foremost the retirement age MUST be adjusted up; life expectancy has increased by 13%, or 9 years, since 1950 and yet thanks to gutless politicians, the age cutoff remains stagnant. A bump up of just one or two years would make a huge difference.Yesterday, William Saletan of Slate.com wrote about the same thing:
How much money would a higher retirement age save? According to the Congressional Budget Office, if the ascent to age 67 were accelerated and completed by 2016, and if the retirement age kept rising two months a year until it hit age 70 in 2037, and if the rate of increase then slowed to one month every two years, Social Security outlays in 2050 would decline by 12 percent. A fully adjusted retirement age--one that kept pace with biology instead of lagging 40 years behind it, as the CBO's scenario does--would generate an even bigger surplus. By one rule of thumb, every year of recipient eligibility consumes about 7 percent of Social Security's financial commitments. Compared to the currently assumed retirement age of 67, an increase to age 73 could cut the government's obligations by as much as 40 percent. Either way, the projected Social Security deficit would disappear--and with it, the Democratic objection to personal retirement accounts, which could be funded out of the new payroll tax surplus.