Impact of Raising Social Security Early Retirement Age

Raising the retirement age for publicly-funded pensions has become an important part of the global discussion about how to deal with weak economies and looming budget deficits. It has also sparked political discord and riots, most recently in France. In his latest Retirement Policy Outlook, AEI economist Andrew Biggs, a former principal deputy commissioner of the Social Security Administration, finds that raising the Social Security early retirement age from 62 to 65 in the United States would:

  • Prolong the Social Security trust fund by around five years--from 2037 to 2042--a modest effect on Social Security's finances

  • Significantly increase (by about 16 percent or $7,500 per year) both Social Security benefits and private pensions once individuals did retire

  • Boost GDP by around 5 percent, adding billions to the economy and tax revenues

  • Improve the federal budget over ten years by around six times more than the recently passed health reform legislation

AEI resident scholar Andrew Biggs can be reached for interview at andrew.biggs@aei.org (202.862.5852) or through his assistant at rohan.poojara@aei.org (202.862.5852). For additional media inquiries, please contact Hampton Foushee at hampton.foushee@aei.org (202.862.5806).

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Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

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Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

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