How To Reduce Social Security Costs

As the population ages and more people collect Social Security, there will be fewer workers paying into the system. Already the age has been raised to collect full benefits. More taxes or lower benefits will be necessary to solve the Social Security problem.

Another way to help reduce the problem of Social Security is to have a staggered amount based on age. This could be accomplished by not giving a COLA, Cost of Living Adjustment, one year at a time, to the young new entrants. As people aged they would get a raise. Inflation would also help reduce the problem by freezing the COLAs for new entrants.

There would be no COLA for people age 62 entering the SS program in 2009. The following year these people would get a raise by entering the age 63 benefits, but, there would be no COLA for age 63 in 2010. The following year these people would get a raise by entering the age 64 benefits, but there would be no COLA for age 64 in 2010.

After a few years of no COLAs there would be a laddered benefit pay raise that each retiree could look forward to. Something like this, based on a 3% COLA for future years. If the COLAs were more, or less, the later years would be more, or less.


YEAR AGE AMOUNT

2009 62 $1,000
2010 63 $1,030
2011 64 $1,061
2012 65 $1,093
2013 66 $1,126
2014 67 $1,159
2015 68 $1,194
2016 69 $1,230
2017 70 $1,267
2018 71 $1,305
2019 72 $1,344
2020 73 $1,384
2021 74 $1,426
2022 75 $1,469
2023 76 $1,513
2024 77 $1,558
2025 78 $1,605
2026 79 $1,653
2027 80 $1,702
2028 81 $1,754
2029 82 $1,806
2030 83 $1,860
2031 84 $1,916
2032 85 $1,974
2033 86 $2,033