House GOP Budget Framework Sets 70 as Full Social Security Claiming Age

As Richtman noted, Congressional Democrats have introduced legislation that would extend the solvency of the Social Security trust fund by asking high earners to begin paying more into the system, without benefit cuts.

Looking forward, Richtman said, it is very likely that House Republicans, who will be in the majority next year, will use the GOP Study Committee’s blueprint as a roadmap for potential cuts to Social Security during debt ceiling negotiations — including raising the full retirement age. As Richtman noted, during the midterm campaign, Rep. Steve Scalise, the third-ranking Republican in the House, said he approved of the Republican Study Committee plan.

“Further, party leaders, such as current House GOP leader Kevin McCarthy, have promised to foment a debt ceiling crisis in order to extract concessions from Democrats, including Social Security cuts,” Richtman said. “We hope and expect congressional Democrats will stand firm when it comes to defending Americans’ earned benefits — regardless of the pressure exerted by Republicans during debt ceiling negotiations.”

Nancy Altman, president of the lobbying organization Social Security Works, shared a similar perspective, noting the Republicans and Democrats in Congress are “miles apart” on the issue of reforming Social Security.

“One problem I have with the proposal is that it frames its reforms as a means of addressing future insolvency, but when you look at the details, it is more than that. This is a proposal to reduce Social Security benefits,” Altman said. “I also take issue with the part of the proposal that suggests people could just go into the market and buy private income insurance.”

According to Altman, the scale and infrastructure underpinning the Social Security program make it more efficient and fairer than private options, and she doesn’t see privatization as a feasible approach from a behavioral finance perspective. Left entirely to their own devices, it is unlikely that people of modest and lower means would or could effectively purchase private income insurance.

“I should say that I do give the Republican Study Committee due credit for putting together a specific framework,” Altman added. “This is a challenging issue and they have put forward a specific, if radical, proposal.”

In the end, Altman said, it will be up to voters to decide what approach they prefer. From her point of view, Congressional Republicans want to reduce benefit payments and shrink the program as a means of “saving it,” while Congressional Democrats would prefer to raise the Social Security taxes paid by the highest-earning Americans.