A representative of the American Academy of Actuaries testified before a Congressional subcommittee on July 8 that the Social Security program retirement age must be raised sooner than later in order to restore actuarial balance to the program.
The group's public interest committee chairperson Tom Terry said aid that the program's retirement age has not kept pace with longevity improvements, noting that that life expectancy for a 65-year-old today is approximately 50% higher than it was in 1937 when Social Security was first implemented.
It is believed that in 2036, Social Security will be unable to pay benefits in full in a timely fashion. "Adjusting the system today means that changes can be phased in slowly over many years. But ignoring the projections and deferring needed adjustments to the future will result only in more difficulty down the road.
"The adjustments necessary at a long deferred date to bring the program to actuarial balance will require more immediate and more drastic measures, measures that will have a more severe impact on beneficiaries and the taxpaying public," Terry said, according to his prepared remarks.
He added that the group does "not advocate for any one proposal or approach. Nor do we intend for an increase in the retirement age to be seen as a solution that will address the entire imbalance in the system."
The testimony also noted there are ways to lessen the impact on those who could be inequitably affected by any increase in the Social Security retirement age.
Terry concluded, "There is no magic solution to the impending solvency challenges facing Social Security. And, certainly, no solution to adequately address the looming issue is going to be easy, simple, and without affecting beneficiaries, workers, or both. But by beginning this process sooner rather than later—when it is too late to employ measures aimed at mitigating those—we can ensure that the system lives on to provide the retirement safety net that it has provided for generations and for the generations to come."
