Whether to raise the retirement age for Social Security recipients has become a divisive issue among candidates competing for the presidential race next year. The third Republican debate last night was the latest showdown.
While former New Jersey Gov. Chris Christie and former South Carolina Gov. Nikki Haley said they support raising the retirement age for younger workers, Florida Gov. Ron DeSantis and Sen. Tim Scott of South Carolina said that’s off the table.
President Joe Biden and former President Donald Trump, who didn’t attend the Wednesday debate in Miami, have both criticized their rivals’ positions on raising retirement ages in their presidential campaigns. But CNN reported that both embraced the idea in the past.
Social Security benefits are primarily paid for through payroll taxes on current workers. As beneficiaries live longer and economic growth softens, benefits paid out from the program have exceeded the incoming contribution since 2021.
The program currently has about 66 million recipients, covering retired workers, survivors of deceased workers, and workers with permanent disabilities. The number is nearly 16% higher than 10 years ago. The U.S. population has grown just 7% during the same period.
On the current path, the trust fund is expected to run short on money to pay the promised benefits by 2034, according to a recent trustees report. If no changes are made, the received benefits could be cut by over 20%, including for current retirees, the report suggests.
But any effort to improve the program’s financial footing—whether to raise the retirement age or cut entitlement benefits—would face fierce political opposition.
The former would upset younger voters, who would have to work more years than their parents’ generation, while already suffering from heavy student loans and unaffordable housing prices. The latter would alienate older voters, who won’t get what’s promised when putting money into the fund.
Currently, people who contribute to the Social Security program can begin receiving benefits as early as 62 years old. In Wednesday’s debate, Christie said he would raise the retirement age for workers who are now in their 30s and 40s, while Haley suggested doing so for those now in their 20s. Neither specified by how many years.
Both candidates also backed the concept of a “means test,” which would limit the federal benefits that wealthy people could receive. “I don’t know if Warren Buffett is collecting Social Security,” said Christie, “But if he is, shame on you; you shouldn’t be taking the money.”
Other Republican candidates have rejected the idea of raising the retirement age, instead suggesting they could tackle the challenge by growing the economy, creating more jobs, and cutting government spending.
“If we’re going to actually tame this tiger, the way you do it is not by picking on seniors who have paid into a program that deserved their money coming back out to them,” said Scott. He argued that raising retirement age would be unfair for Americans in certain jobs that physically couldn’t work for longer.
DeSantis was also clear on his opposition to the idea of delaying retirement, noting that Americans’ life expectancy is actually declining in recent years. “I don’t see how you could raise it the other direction,” said the governor of Florida, home to millions of retirees.
DeSantis vowed to protect Social Security payments: “I’d say to seniors in America: Promise made, promise kept. I understand what you’re going through with the rising prices, and you need that Social Security check.”
Businessman Vivek Ramaswamy, the youngest among all candidates on stage, said the country is working within “the last window” to fix the problem while still leaving Social Security and Medicare benefits for current seniors intact.
None of the candidates suggested they would cut entitlement benefits for current retirees.
Write to Evie Liu at evie.liu@barrons.com
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