By 2050, people age 65 and older are expected to comprise more than 20% of the nation’s population, up from 13% in 2010. This demographic is expected to put further strain on the Social Security Trust Fund, which is predicted to be exhausted by 2037. A new report by the U.S. Government Accountability Office (GAO) looks at suggested ways to reduce the strain on the trust fund—increasing the earliest eligibility age (EEA) for Social Security benefits, the full- benefit retirement age (FRA), or both.
The authors suggest that while many workers could stay in the workforce longer and thus save more for retirement by delaying the collection of Social Security benefits, many older workers would face health challenges that could prevent this. Some older workers would become disabled and apply for federal disability benefits or other assistance programs. The authors note recent research concluding that raising the FRA would increase the number of federal disability income recipients.
The authors suggest that raising the EEA would have a larger effect than a comparable rise in the FRA. They offer various policy options for addressing any corollary increases in disability claims and helping those individuals who cannot work longer.
