Senator Rand Paul is warning that the U.S. Social Security program is facing a bleak future and could run out of money by 2034. To address this issue, Paul suggests raising the retirement age to 70.
Retirement Age Must Rise To 70
During an appearance on a podcast, Paul stated that the program is quickly running out of cash to pay future obligations. He emphasized that people will have to start receiving Social Security benefits at a later age. Paul noted that the last time the eligibility age was raised, from 65 to 67, it was done gradually over two decades.
Paul believes that the retirement age must be raised to 70 to ensure the program’s sustainability. He warns that if the problems are not fixed now, there could be severe consequences, including riots in the streets.
Difficult Trade-Offs Ahead
Paul outlined the difficult trade-offs that policymakers face, including raising Social Security taxes dramatically, to 25% from the current 15%. However, he rejects calls to increase taxes on high earners, stating that they already pay a significant portion of the income tax.
Instead, Paul suggests reducing benefits or means-testing Social Security, as the program simply does not have enough money to continue in its current form. He emphasizes that bold reforms are necessary to guarantee the program’s long-term solvency.
Social Security Faces Fiscal Cliff
The Committee For A Responsible Federal Budget has warned that Social Security is just seven years away from a fiscal cliff that could slash benefits for millions of retirees by as much as 24% if the program’s main trust fund becomes insolvent by 2032.
Billionaire entrepreneur Elon Musk has also expressed concerns about the looming Social Security shortfall, stating that it could push the country toward bankruptcy. Musk believes that the way to fix this issue is to “massively increase the economic output,” which he says is only possible with advances in AI and robotics.
Key Points
- Rand Paul suggests raising the Social Security retirement age to 70 to address looming insolvency concerns
- The program could run out of money by 2034 if no action is taken
- Policymakers face difficult trade-offs, including raising taxes or reducing benefits
- The Committee For A Responsible Federal Budget warns of a fiscal cliff that could slash benefits by 24% by 2032
- Elon Musk believes that increasing economic output through AI and robotics is the key to fixing the issue