May 15, 2011

The Social Security Log Jam

Filed under: politics,retirement — Penrod @ 4:47 PM
Tags: , , ,

The Possible Solution….

Create a one-time voluntary program that gives a five-year early retirement incentive for all Seniors at full Social Security benefits rate.  The government would send out an initial “opt-in” inquiry, to determine how much participation could be expected.  Based favorably upon that, congressional leadership would tentatively agree, and  the decision to implement the program would be made.

This plan will open up hundreds of thousands of job slots for those of younger age who are out of work today.  This will immediately benefit the economy.  It will stop-short  many unemployment benefits claims.  It will allow those who are in danger of foreclosure to return to work.  This will have a “settling effect” on the economy.  The initial outlay for the program is relatively small, and is adjustable, dependent upon success.

The program would, of course, be tied to a now, more palatable congressional solution, making  the Social Security part of the entitlements equation, agreeable enough to pass.  The discussion will contain these points:

#     The one-time early retirement incentive (as listed above).

#     A Social Security revamping that adds a minimum of three (five years could very well be pressed) years to the retirement age schedule.  In effect, those forty-seven years old today would have the new Social Security minimum benefits start point at sixty-five years old, instead of the present sixty-two years old – with the remaining schedule simply pushed forward from there.  Whether this happens on a year-by-year sliding format or not is debatable, but in the end, the result is a three or five-year gain.

#      Waivers that make considerations for (but not limited to) certain types of career employment which may affect  some workers in a more physically wearing way than others.

#     A change to the cost-of-living adjustment criteria to more closely reflect actual national economic living conditions.

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