The FINANCIAL -- While politicians argue whether to increase Social Security taxes or
raise the retirement age for eligibility, voters think such decisions
should be made closer to home.
Sixty-five percent (65%) of Likely U.S. Voters believe individuals should have the right to select their own retirement age. Those who want to retire earlier could pay more in Social Security taxes now. Those who would prefer lower taxes today could pay less in taxes and retire later. A new Rasmussen Reports national telephone survey finds that just 23% disagree and believe people should not have the right to make such a choice. Twelve percent (12%) are not sure.
Support for letting people select their own retirement age comes from 70% of Republicans, 57% of Democrats and 68% of those not affiliated with either major party. Seniors favor the idea of offering such a choice by a 53% to 29% margin. Younger voters are even more supportive.
When considering reforms to Social Security and/or Medicare, popular support is essential because the key obstacle to any proposed reform is distrust of politicians to implement it. Sixty-four percent (64%) believe that any proposed changes in either Social Security or Medicare should be submitted to the American people for a vote before they can become law.
The survey of 1,000 Likely Voters was conducted on June 21, 2011 by Rasmussen Reports. The margin of sampling error is +/- 3 percentage points with a 95% level of confidence.
When he first proposed Social Security, President Franklin D. Roosevelt envisioned a combination of mandatory taxes and voluntary contributions. He thought the mandatory payments would set a minimal baseline but that people could contribute more to receive increased benefits. This is consistent with the concept of people paying more to retire earlier and paying less to retire later.
If they had such a choice, voters under 65 are fairly evenly divided as to whether they would prefer an earlier or a later retirement. A narrow plurality (42%) would choose a later retirement age, while nearly as many (38%) take the opposite view. Voters between age 40 and 64 are even more likely to opt for lower taxes and a later retirement.
Voters under 40 were asked about a specific choice—continuing to pay current Social Security taxes and retire at age 67 or stop paying the personal Social Security taxes and retiring at age 75. Thirty-six percent (36%) would prefer to wait until age 75, while 50% would prefer the status quo. Most men would prefer to defer retirement benefits to age 75, while most women would prefer to pay more in taxes today. As a practical matter, it is impossible to know how people would respond until the idea was sufficiently debated and individuals had a chance to discussion options with family, friends and financial advisers.
Among those who would prefer a later Social Security retirement age, 63% would use their tax savings to invest in a private retirement account. Twenty-four percent (24%) would use the money for current expenses.
Earlier polling found voters divided on how to make sure the Social Security and Medicare trust funds have enough money to pay all promised benefits. Thirty percent (30%) say higher taxes are the answer, while 34% prefer raising the retirement age when those benefits kick in for future generations. Only 15% believe it’s better to cut the promised level of benefits.
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