Argument Against Raising the Social Security Retirement Age: Exploring the Implications

As the debate over Social Security continues, one of the frequently proposed solutions is to raise the retirement age. However, this approach raises several concerns that go beyond the immediate financial savings. This article aims to explore these concerns and examine why raising the retirement age is problematic.

Financial Savings vs. Human Cost

The primary argument supporting the idea of raising the retirement age is to save money by delaying payouts to those who eventually die before collecting their full benefits. However, this perspective neglects the human cost. Many individuals paid into the system for decades, only to die without ever receiving a penny in return.

Impact of COVID-19 on Future Payouts

The recent wave of elderly deaths due to COVID-19 has added another layer of complexity to this issue. As the number of elderly deaths increased, the financial strain on the Social Security system also grew, exacerbating the need to preserve funds. This situation highlights a fundamental flaw in the system's design, which should not leave individuals who contributed for years vulnerable to early death.

Apyramid Scheme

Many critics argue that Social Security operates as a pyramid scheme, where the first generation of recipients never paid into the system. This structure suggests that the viability of the program is built on a highly precarious foundation, as future generations must shoulder the burden of funding the earlier contributors. Additionally, the current system can be seen as a form of vote-buying, financed with other people's money—a practice that raises serious ethical concerns.

Current Life Expectancy Trends

Life expectancy in the US is now decreasing, contrary to popular belief. This shift means that many workers are paying into Social Security for decades without ever collecting benefits. The Social Security Administration should address this issue by focusing on legitimate disability cases, ensuring that benefits are only awarded to those who truly need them. However, it is also worth noting that at age 60, many individuals might already have health issues that make continued work difficult. Allowing people to retire earlier could be a more humane and realistic solution.

Health and Disability Impact

By age 60, many workers face significant health challenges that make it difficult to continue working productively. The healthcare system, including Medicare, would face increased costs due to the need for more specialized care, such as surgery, pain management, and appointments with specialists. This additional strain on the healthcare system underscores the need for a more flexible retirement policy that accommodates the diverse needs of workers.

Non-Physical Jobs and Cognitive Decline

While physical jobs may be particularly challenging at an advanced age, non-physical positions could also present difficulties. Some individuals may show signs of cognitive decline, such as Alzheimer's disease, making it harder to learn and adapt to new tasks. Raising the retirement age without providing other financial security measures would be unfair to those who cannot continue working due to health reasons.

Alternative Solutions

Given the criticisms surrounding the current Social Security system, it is crucial to explore alternative solutions. One suggestion is to increase FICA taxes by a half percent for both employers and employees. Another idea is to introduce a new revenue stream by levying a quarter percent sales tax on alcohol, marijuana, and tobacco. These items are already subject to sin taxes, and the additional revenue could help fund healthcare costs associated with overindulgence.

Furthermore, with the rise of artificial intelligence (AI) and automation, many jobs are becoming redundant. This trend raises questions about future employment and the need for a more resilient social safety net. Governments must consider imposing a tax on AI and robotic technology to ensure that the benefits of technological progress are shared fairly. This could include a tax on companies that use robots to replace human workers, with the collected funds used to support displaced workers.

Conclusion

In conclusion, the decision to raise the Social Security retirement age should be approached with caution. While it may offer short-term financial benefits, it does not address the underlying issues facing the current system. Alternative solutions, such as increasing tax contributions and exploring new revenue sources, may provide more sustainable and equitable support for our aging population. As technology continues to transform the job market, it is essential to develop comprehensive strategies that ensure the well-being of all workers, regardless of their age or health status.