Today on Face The Nation, Sen. Chuck Hagel, Republican from Nebraska, announced his own plan for Social Security Reform. In it PSA's would be funded by government borrowing and all those under forty-five would be allowed to invest. Also, to address the long-term solvency the Senator proposes several things. First of all, starting in 2023 he would raise the minimum retirement age from 67 to 68. For all those retiring early at the age of 62 they would receive 63% of full benefits, as opposed to the 70% number they currently receive. Furthermore, to take into account longer life spans Sen. Hagel would slow the growth of benefits.
I think this is a great plan, and it is certainly better than the other plan put forth by Sen. Lindsey Graham, which would raise the amount of money subject to the payroll tax. Not only does Sen. Hagel's plan allow for PSA's, but it also addresses the main reason that Social Security is headed towards insolvency, which is retirees living longer than they used to.
Back when the program was created, Social Security simply insured that seniors lived the last years of their lives with the decency and respect they deserved. With longer life spans today, Social Security is subsidizing a retiree's second life. Just as benefits increase with wages, so too should the age retirees are eligible to receive benefits move upwards with the nation's average life-span.
For a guy who is supposed to be a maverick, Sen. Hagel's plan mirrors the president's desires more than any other I've seen or heard. It is a strong, common sense plan and hopefully it will serve as the final piece of legislation addressing Social Security.
Hat Tip: From The Bleachers
You are right Geoff...Hagel's plan is legit.
ReplyDeleteWho would have thought Hagel would have introduced a plan that would be the "right wall" in the Senate?!