The AARP Begins To Concede On Social Security And Medicare: Is That A Wise Move?

The American Association For Retired Persons has long been a group unwilling to recognize the long range financing problem of Social Security and Medicare.

Suddenly, the organization has made an about face and is beginning to concede that some changes in the systems set up by Franklin D. Roosevelt and the New Deal and Lyndon B. Johnson and the Great Society in the 1930s and 1960s are essential for long term survival.

Those who are strongly progressive are bitterly opposed to any changes, but it is not a question of what one would wish. Rather, it is of what MUST be done to avoid privatization or destruction of the system, with privatization really much the same as destruction!

The author has stated earlier in this blog, over the past couple of years, of the need for two changes: raise the amount of income taxed for Social Security to be unlimited, just as with Medicare; and raise the retirement and eligibility age for Social Security and also Medicare.

Also, tighter controls over Medicare fraud and payouts MUST be instituted, so that the system will be available for the long term future!

One must recall that Speaker of the House Thomas “Tip” O’Neill of Massachusetts and President Ronald Reagan, who often sparred with each other with their totally differing views of the role of government, came up with an agreement in 1983, which transformed the Social Security system, with very little negative effect. That was to raise the retirement age for those born after 1938 by two months, making it 66 for those born in 1944 and after, and age 67 for those born after 1960.

The change was done with additional taxes on higher incomes up to the range of $106,800 where it now stands, and no one was victimized, because everyone knew that 20 plus years later, the changes would affect them, and they had time to plan for their own retirement in addition to Social Security benefits. And for those who wished to retire earlier, the younger age of 62 was kept, although at lower rate than earlier, but again with a generation of notice as to the changes which were coming.

So, to raise the retirement age for full Social Security to age 68 for people born after 1980 and to age 69 for people born after 1990 is acceptable with plenty of warning. The reality is that people are living longer and staying healthier longer and often working longer, so as long as one prepares ahead of time, and with the earlier retirement age of 62 at lower rate of payment available, there is no reason why such reforms cannot be accomplished.

As far as Medicare age, it could be raised for people born after 1980 to age 66 and those born after 1990 to 67, with provision that those who are in poor health could start at age 64 or 64 with reduced benefits.

This will not please everyone, but such changes will be essential in order to avoid the Republican plan to privatize and or destroy both systems, part of our safety net, that MUST be preserved, but in a rational way!

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