A New Idea: Mandatory Retirement Accounts to Help Workers Delay Claiming Social Security

A new proposal would create retirement saving accounts that would enable people to postpone the age at which they claim Social Security, thereby increasing monthly benefits, reports MarketWatch . This idea comes from a trio of well-known policy experts - Gary Koenig (AARP), Jason Fichtner (Mercatus Center at George Mason University), and Bill Gale (Brookings Institution). Their proposed Supplemental Transition Accounts for Retirement (STARTs) would be mandatory accounts, fully integrated into the Social Security program, and funded by employees, employers, and a progressive government contribution. Every individual with a START — if claiming Social Security before their full retirement age — would be required to exhaust the account's assets before receiving retired worker benefits, age-based spousal, or survivor benefits. Raising the age at which benefits are first paid would lower the total actuarial reduction that applies to benefits claimed early, yielding higher monthly benefits over the life of the recipient.