Raise retirement age, Greenspan tells panel - To 70th??

In my article On Mar 15, 2005. I did state my view on extending the retirement age. till 75th-80th!!


This is the only way out not only for American.. This is also for the whole world. Just imagine if the Baby Bloomer are all reitred at 60th.. What would happen to the World Economy?????

So these is a really significant issue for for all of us to address.

Raise retirement age, Greenspan tells panel
By Kevin G. Hall Knight Ridder News Service

WASHINGTON - • Alan Greenspan didn't support any specific legislation, but indicated that there may be little choice but to encourage older Americans to stay in the work force.

Federal Reserve Chairman Alan Greenspan told Congress on Tuesday to consider raising the retirement age to help fix Social Security's funding problems, and he made it clear that benefit cuts should be part of any solution.

Greenspan also told the Senate Select Committee on Aging that lawmakers should give themselves a 2008 deadline to fix the system. That's when the first wave of 76 million baby boomers begin to retire.

Over the past two months, Greenspan has walked a fine line in testimony before several House and Senate panels, offering advice but stopping short of specific recommendations. But Tuesday he offered more direction, such as saying it is logical to have older people work longer.

"Increasing labor-force participation seems a natural response to population aging, as Americans are not only living longer but are also generally living healthier," Greenspan said.

Sen. Chuck Hagel, R-Neb., has introduced legislation that would increase the Social Security retirement age to 68 and index future benefits to life expectancy so that earlier retirees would get smaller initial benefits. Greenspan didn't support any specific legislation, but indicated that there may be little choice but to encourage older Americans to stay in the work force.

"Rising pressures on retirement incomes and a growing scarcity of experienced labor could induce further increases in the labor-force participation of the elderly and near-elderly in the future," he said.

While Social Security runs an annual cash surplus today, by 2018 the yearly cost of pension benefits will exceed annual revenues, and by mid-century revenues will cover only 73 percent of benefits. Unless changes are made, Social Security's funding gap eventually will worsen federal budget deficits, Greenspan warned.

Raising taxes could be part of the solution, but Greenspan warned against relying too heavily on that. To fully fund current commitments in 2050, he said, Congress would have to raise the payroll tax to about 18 percent from the current 12.4 percent, split equally between workers and employers. Such a move could "severely inhibit economic growth," he said.

The Fed chairman again offered qualified support for President Bush's proposal to allow younger workers to divert some of their payroll taxes to personal retirement accounts that invest in stocks and bonds. Such accounts could boost national savings, which would help finance investment and economic growth, he said.

Star-Telegram | 03/16/2005 | Raise retirement age, Greenspan tells panel