GOP candidates discuss raising retirement age
Several Republican presidential candidates have expressed their support for raising the retirement age for collecting Social Security.
New Jersey Gov. Chris Christie laid out a plan at the GOP debate Wednesday, saying he’s in favor of raising the retirement age for collecting Social Security to 69, gradually implementing the change by increasing the retirement age by two months each year starting in 2022.
In order to curb the growth in entitlement program costs that threaten to lead to wide budget deficits in the future, Christie has previously proposed phasing out and eliminating Social Security income for wealthy Americans who don’t need it.
His plan would phase out payments for those who make $200,000 a year in other income during retirement and implement a means test for those who make $80,000 a year in non-Social Security income. Christie believes the plan would affect 2 percent of all recipients.
Former Florida Gov. Jeb Bush also proposed significant changes to Social Security and Medicare. Under Bush’s proposal, the retirement age would go up by one month each year, beginning in 2022 when the retirement age become 67 under current law. By 2032, the retirement age under his plan would be 68; by 2046 it would be 69. Currently, it’s 66.
Robert Stanlick, vice president of Presidential Brokerage, the parent company of America’s Retirement Store in Colorado Springs, told KRDO NewsChannel 13 the proposal wouldn’t necessarily be a bad thing.
“One of the problems that this millennial group is having is they’re having such a hard time getting that first job and moving up the ladder. I think it’s 50 percent who don’t really get into full-time jobs until sometime in their 30s,” Stanlick said. “That’s five to seven years of earnings that they’ve missed out on Social Security. Even if they could retire at 66, their total benefits would be less because they didn’t have as many years in the system.”
Stanlick also pointed to the growing life-expectancy rate.
“With life expectancy growing, I think this is a clear picture that the government is saying, ‘Wow, we’re expecting people to pass that 81, 82 years and maybe live to 89 and 90 at this point and they’re scared to pay those extra benefits.”
Stanlick expressed concern over another Social Security change in the works under a budget deal passed by the U.S. House of Representatives on Wednesday. In the deal, the government is closing what it considers loopholes in the Social Security system, like the popular “file-and-suspend” benefit.
Under current law, a person at full retirement age could file and suspend their Social Security benefits and earn delayed credits up to age 70. Their spouse could then file for a spousal benefit and earn up to 50 percent of the suspender’s full retirement benefits. Under the proposed budget deal, the file-and-suspend program would go by the wayside for those under 62 and for those who aren’t currently in the program.
“This is going to affect anyone under the age of 62 by the end of this year,” Stanlick said. “This is taking effect in less than three months. So, this is a pretty big shocker.”
The Senate is expected to act on the budget deal before next Tuesday.
