Today, Florida Sen. Marco Rubio unveiled his ideas to improve retirement security, including plans to make Social Security solvent, and encourage delayed retirement and increased retirement saving. (Full disclosure: I advised his staff on the plan and have written in favor of some of the provisions.)
Included in Sen. Rubio’s ideas are:
· Social Security solvency: Rubio would gradually increase the retirement age in line with life expectancies and reduce the growth of benefits for higher-earning individuals. In addition, Rubio favors strengthening the safety net for lower-income retirees.
· Delayed retirement: Rubio would eliminate the 12.4 percent payroll tax for retirement-age individuals to encourage them to stay in the work force. I really like this idea and wrote on it for the Wall Street Journal.
· Open the TSP: Rubio would allow workers who are not offered retirement plans by their employers to participate in the federal government’s Thrift Savings Plan, the DC pension for government employees. In a way, this builds upon the President’s MyRA proposal, but allows for greater choice in investments.
Agree or disagree, we need more people putting ideas on the table. Click here to read my National Affairs article on how to fix Social Security and improve retirements.