Resolved: The US should raise the Social Security age of eligibility

Thanks to Larztheloser for agreeing to this debate. I’ll first give some background information, and the rest of my arguments will largely draw from said information.1. Background Information At its inception in 1935, the life expectancy was about 62. As of 2010, the life expectancy is 78.7 (1). In 1940, there were about 159.4 workers supporting each Social Security beneficiary. This quickly went down as more people started to use it. By 1955, it was down to 8.6 workers for each beneficiary. As of 2010, it was down to 2.9 (2). By 2040, it is expected to be at 2.1 workers supporting each beneficiary. Fertility rates are on a downward trend, and people are living longer, and after reaching the age of eligibility, the average lifespan is even longer (3). Currently, the life expectancy of people who reach the age of 65 is 40%, or six years, longer than it was in 1940 (4). 2. Age 65 somewhat arbitrary The age of eligibility was set at 65 for somewhat arbitrary reasons. The first reason was because that was the age where people tended to retire. The second reason was because about half of the states that already had old-age pension systems had the age of eligibility at 65 (5). So this raises the question, “Why have we clung to 65 for all these years, and why should we continue doing so?” This of course, is a question that Con will need to answer. 3. Worker-Beneficiary Ratio As shown in the background information, the worker/beneficiary ratio is a huge problem. As there are less than three workers paying for the social security benefits of each beneficiary (and this number is trending downwards), the workers are receiving an unreasonably large tax burden. Now the payroll tax is 12.4%, but in 1940, it was only2%. This worker/beneficiary ratio issue is largely a result of increasing life expectancies. The average life expectancy is now about 17 years longer than the life expectancy when Social security was first implemented, so larger amounts of people are reaching the age of eligibility. Also, now that they do reach the age of eligibility, the people that now get benefits receive them for about six years, or 40%, longer than they generally would have received in 1940 (4). Because of rising life expectancies and lower fertility rates, the age gap in America is growing larger, with less young people and more seniors. Clearly, the larger the more workers there are per beneficiary, the better, but the ratio is only getting worse and worse. So how could this issue be solved? The best way to solve this problem is to raise the Social Security age of eligibility to not only reduce the difference between the age of eligibility and the average life expectancy of the average American, but also to reduce the total number of people who receive the Social Security benefits. 4. Financial Issues for Government When Social Security is expected to pay more benefits than it has received in income, it takes money out of a very large trust fund. However, the trust fund is expected to be completely exhausted by 2033 (6). After that, Social Security, if it is not abolished, will be operating at a definite loss if it doesn’t somehow reduce benefits. In order to reduce benefits, raising the age of eligibility is the best option. Through a gradual increase, people will have the time to plan for the change, they will receive no less monthly benefits once they reach the age of eligibility, and they will help to make social security something feasible to the younger generation, who won’t have to be paying at a two-worker per beneficiary rate anymore. Conclusion Since Social Security was first implemented, life expectancies have risen, fertility rates have dropped, benefits have increased, amount of workers paying for the benefits has decreased, more people are living to the age of eligibility, taxes have increased, the program will be operating at a loss by 2033, and the only thing that has remained constant is the age of eligibility. Increasing the age of eligibility would make the program sustainable to government, increase the amount of workers supporting each beneficiary, and in doing so, lower the tax burden on the workers. The Social Security age of eligibility should be risen. Sources:1. http://www.infoplease.com...2. http://www.ssa.gov...3. http://www.ssa.gov...4. http://www.justfacts.com...5. http://www.ssa.gov...6. http://www.nytimes.com...