Rubio's Plan to Modernize Retirement Security
June 16, 2014
Senator Marco Rubio (R-Fla.) recently outlined a proposal that modernizes national retirement security policies by stabilizing Social Security, providing tax relief to working seniors, expanding savings opportunities and making Medicare more efficient, according to Charles Blahous, senior research fellow at the Mercatus Center.
Senator Rubio presented his program at the National Press Club last month.
- To maintain the solvency of Social Security -- the largest federal program in the budget -- Rubio proposes to increase the retirement age and change the benefits formula using progressive indexing.
- Currently, working seniors only get 2.5 cents back in Social Security benefits for each additional dollar in payroll tax they contribute. Rubio's plan eliminates the retirement earnings test.
- Rubio would open up the federal Thrift Savings Plan (TSP) to all income levels.
- The senator would restructure incentives within Medicare to reduce spending growth and increase the value of Medicare services.
Our current federal entitlement programs are unsustainable. If they are to survive, politicians must be willing to accept political risks and restructure the programs in order to benefit younger generations down the line.
Source: Charles Blahous, "Rubio's Retirement Security Vision," Manhattan Institute, June 9, 2014.
Browse more articles on Economic Issues