First, remove the limitation on income level requiring payments into SS system, whether it is $184,500, or the current level each year. That releases enormous resources, paid by people who can best afford it at the time in their life they can best afford the payments, and who under current rules receive benefits when they most need them (retirement).
Second, the percentage paid into OASI could be increased slightly for all, sharing equally. When SS was first implemented in 1935, the percentage workers paid was two percent but currently is 6.2% with an equal amount by employers. Small incremental changes every few years would be more acceptable to taxpayers and provide tremendous increases in resources for retirement and disabilities, making SS/Medicare more sustainable, with everyone benefitting in the long-run.
Third, when SS was implemented, it was assumed in actuarial calculations many would die before receiving benefits. (Average age of death was then about 56, and normal retirement age was 65.) Gradually raising normal age to receive full benefits from the current age of 67 would solve many problems and encourage people to work longer, which would contribute to their health in later years. (Retirement is one of the most dangerous things people do to their health, lots of studies show.) And waiting a decade to change retirement age to 69 and eventually 72 for full retirement would benefit everyone but give plenty of time for 54-year-old payees and younger to plan for it.
Some firms are developing “quasi-retirement” plans to employees over 65 or 67 by paying part-time employees (on Medicare) their Part B and D premiums when they share their job position with similar workers (or younger interns) in these quasiretirement programs. This would allow firms to retain the experience of age with mentoring of the young, but such programs need to be comprehensively-planned to be effective.
Some people assume SS is a system for setting aside funds for their future retirement, but that is false. SS is a system in which the benefits for retirees and disability recipients are paid by current workers. If some or all these policies are not adopted, the SS Trust Fund will be depleted soon, and benefits will be reduced for everyone. All or a few of these steps could increase current and future prosperity for everyone.
