Spending Reform

Phase in an Increase in the Eligibility to 67

Debt Level 123.7%
166%

In 1983, Congress reformed Social Security to gradually increase the normal retirement age to 67. We propose extending that reform to Medicare as well, whose current eligibility age is 65 in most cases. Beginning in 2026, the retirement age would be increased by two months each year until it reached 67. After it was fully phased in 2036, the retirement age would remain at 67. Under Social Security, the retirement age will be fully phased in to 67 by 2027. Since 1965, when Medicare was originally enacted, life expectancy has increased by over four years and is projected to continue to increase.  This option would save $29 billion over 10 years and those savings would significantly increase over the long-run.

Reduction in debt in 2054 (including debt service):

1.4% of GDP

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