Fixing Social Security (Karl Denninger)

Social Security can be fixed, in part, by indexing or moving the retirement age upward.  If we move it to 70, for example, it makes a significance difference.  Currently, the full retirement age is 67 for someone born in 1960 or later.  Life expectancy in the U.S. is approximately 78 years, or 11 years post-retirement.  If we raise the age to 69, then we cut that to 9 years, which reduces cost by about 18%.  It's not enough, but it would help.  Un-capping wages would also help.  We could also means test Social Security, paying it only to people with a net worth of under $1 million.  This would not save a large amount of money as most "Baby Boomers" are pretty broke (in debt up to their eyeballs), but it would help.  Of course, Medicare is an even larger problem.  However, that is for a future post.