Saving SS

The current retirement age for social security is 67 and early retirement is at 62. This means a 30% reduction in benefits. The average benefit at age 67 is $1,850 per month so the benefit at age 62 would be $1,300. Since this is an annuity if the person lives the average life span of 76 years they will collect the same amount regardless of what age they start. Social security is not sustainable unless some changes are made. One change could be to up the full retirement age to 70. This would then reduce the age 62 benefit to $1,150. Another change would be to have an income limit for benefits. All individuals with more than $100,000 of income not counting social security would not receive any benefit. This would save $2 billion per year. Withholding SS tax on all earnings would bring in $85 billion per year. If all those with income of $100,000 would not get any SS this would save $100 billion per year. These changes would get SS past the hump of baby boomers retirees and remove the threat to SS for many years. Of course these changes require cooperation between parties so just forget it and have the Fed create new money.