Thursday, December 17, 2009

Chuck Blahous on Social Security and Work

The Hudson Institute's Chuck Blahous has a new article in National Affairs looking at Social Security reforms that would improve incentives to work and delay retirement. These include altering the factors used to calculate benefit reductions and increases for claiming before or after the full retirement age; changes in the way Social Security calculates workers' average earnings, upon which benefits are paid; reductions in payroll taxes for older workers; and possible repeal of the Retirement Earnings Test.

In addition, Chuck discusses recent experience with Social Security reform, the effect of market downturns and budget deficits on the case for personal accounts, and other issues. It's a good piece that's well worth checking out.