The Case for Raising Social Security’s Early Retirement Age
Retirement Policy Outlook, No. 3, p. 1, October 2010
9 Pages Posted: 26 Jan 2012
Date Written: October 27, 2010
In this Outlook, I use a detailed microsimulation model of the population to estimate the effects of increasing the Social Security Earliest Eligibility Age (EEA) from sixty-two to sixty-five on Social Security’s finances, retirement income, and the economy. Increasing the EEA would extend the solvency of the Social Security trust fund by about five years, increase total annual retirement income as of age seventy for affected individuals by around 16 percent, and increase gross domestic product (GDP) by around 5 percent. Raising the EEA may be one of the most effective options available for improving retirement-income security and would improve the federal budget in one year nearly as much as the recent health reform bill was projected to do over ten years.
Keywords: Social Security, Early Retirement, Budget
JEL Classification: H55
Suggested Citation: Suggested Citation