Raising the Eligibility Ages for Medicare and Social Security

A recent Congressional Budget Office (CBO) issue brief analyzes the effects of raising the eligibility ages for Medicare and Social Security benefits. Taking such action would reduce federal spending and increase federal revenue by causing some people to work longer. But, it would also reduce a person’s lifetime Social Security benefits and cause people who would have otherwise enrolled in Medicare to face higher health insurance premiums and out-of-pocket health care expenses.

The CBO found that raising the Social Security early eligibility age from 62 to 64 or the full retirement age from age 67 to 70 will increase the workforce and the economy by approximately one percent over the long-term. Raising the Medicare eligibility age from 65 to 66 will increase the workforce and the economy by a smaller amount.