The age at which benefits are first available could be raised gradually from 62 to 64 to encourage later retirement, particularly if the requirements for disability benefits are somewhat eased for this age group. Spouses' benefits might be lowered in exchange for increased benefits to elderly widows and widowers. This menu shows that fixing the financial problems of Social Security is not rocket science. There are many ways to do it that don't require intergalactic thrust. As the Social Security debate continues, it is important to realize that privatization is not a free lunch.
Taxes have to be raised, benefits for current retirees and older workers cut, or both.
If the advocates of privatizing Social Security were making valid claims, it might be worth paying those higher taxes. But it is hard to see why American workers should be asked to fork over more for a new system that would deliver lower average benefits for each tax dollar they pay, that would subject workers to financial risks they are ill-equipped to bear, and that would place in jeopardy the social assistance on which millions of Americans depend. We need to tune up Social Security, not trade it in for a new, but flawed, model.