Proposed Provision: C2.5. Increase the normal retirement age (NRA) 3 months per year for those age 62 starting in 2025 and ending in 2036 (NRA reaches 70 for those age 62 in 2036). Thereafter, index the NRA to maintain a constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA minus 20). We assume the NRA will increase 1 month every 2 years. Also, increase the earliest eligibility age (EEA) from 62 to 64 at the same time the NRA increases from 67 to 69; that is, for those attaining age 62 in 2025 through 2032. Keep EEA at 64 thereafter.
OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)
| |
Income Rates |
Cost Rates |
| Year |
Current Law |
Provision |
Current Law |
Provision |
| 2024 | 13.0 | 13.0 | 14.7 | 14.7 |
| 2025 | 12.9 | 12.9 | 15.0 | 15.0 |
| 2026 | 13.1 | 13.1 | 15.2 | 15.1 |
| 2027 | 13.1 | 13.1 | 15.4 | 15.2 |
| 2028 | 13.1 | 13.1 | 15.4 | 15.2 |
| 2029 | 13.2 | 13.2 | 15.5 | 15.2 |
| 2030 | 13.2 | 13.2 | 15.5 | 15.3 |
| 2031 | 13.2 | 13.2 | 15.6 | 15.3 |
| 2032 | 13.2 | 13.2 | 15.6 | 15.2 |
| 2033 | 13.3 | 13.3 | 15.7 | 15.2 |
| 2034 | 13.3 | 13.3 | 15.8 | 15.2 |
| 2035 | 13.3 | 13.3 | 15.9 | 15.3 |
| 2036 | 13.3 | 13.3 | 16.0 | 15.3 |
| 2037 | 13.3 | 13.3 | 16.1 | 15.3 |
| 2038 | 13.3 | 13.3 | 16.2 | 15.3 |
| 2039 | 13.3 | 13.3 | 16.3 | 15.3 |
| 2040 | 13.3 | 13.3 | 16.3 | 15.3 |
| 2041 | 13.3 | 13.3 | 16.4 | 15.3 |
| 2042 | 13.3 | 13.3 | 16.4 | 15.3 |
| 2043 | 13.3 | 13.3 | 16.5 | 15.3 |
| 2044 | 13.3 | 13.3 | 16.5 | 15.2 |
| 2045 | 13.3 | 13.3 | 16.6 | 15.2 |
| 2046 | 13.3 | 13.3 | 16.6 | 15.2 |
| 2047 | 13.4 | 13.3 | 16.6 | 15.2 |
| 2048 | 13.4 | 13.3 | 16.7 | 15.2 |
| 2049 | 13.4 | 13.3 | 16.7 | 15.2 |
| 2050 | 13.4 | 13.3 | 16.8 | 15.2 |
| 2051 | 13.4 | 13.3 | 16.8 | 15.2 |
| 2052 | 13.4 | 13.3 | 16.9 | 15.2 |
| 2053 | 13.4 | 13.3 | 16.9 | 15.2 |
| 2054 | 13.4 | 13.3 | 17.0 | 15.3 |
| 2055 | 13.4 | 13.3 | 17.1 | 15.3 |
| 2056 | 13.4 | 13.3 | 17.2 | 15.3 |
| 2057 | 13.4 | 13.3 | 17.2 | 15.4 |
| 2058 | 13.4 | 13.3 | 17.3 | 15.4 |
| 2059 | 13.4 | 13.4 | 17.4 | 15.5 |
| 2060 | 13.4 | 13.4 | 17.5 | 15.5 |
| 2061 | 13.4 | 13.4 | 17.6 | 15.6 |
| 2062 | 13.4 | 13.4 | 17.7 | 15.6 |
| 2063 | 13.4 | 13.4 | 17.7 | 15.6 |
| 2064 | 13.4 | 13.4 | 17.8 | 15.7 |
| 2065 | 13.5 | 13.4 | 17.9 | 15.7 |
| 2066 | 13.5 | 13.4 | 17.9 | 15.7 |
| 2067 | 13.5 | 13.4 | 18.0 | 15.8 |
| 2068 | 13.5 | 13.4 | 18.0 | 15.8 |
| 2069 | 13.5 | 13.4 | 18.1 | 15.8 |
| 2070 | 13.5 | 13.4 | 18.2 | 15.9 |
| 2071 | 13.5 | 13.4 | 18.3 | 15.9 |
| 2072 | 13.5 | 13.4 | 18.3 | 15.9 |
| 2073 | 13.5 | 13.4 | 18.4 | 16.0 |
| 2074 | 13.5 | 13.4 | 18.4 | 16.0 |
| 2075 | 13.5 | 13.4 | 18.5 | 16.0 |
| 2076 | 13.5 | 13.4 | 18.5 | 16.0 |
| 2077 | 13.5 | 13.4 | 18.6 | 16.0 |
| 2078 | 13.5 | 13.4 | 18.6 | 16.0 |
| 2079 | 13.5 | 13.4 | 18.6 | 16.0 |
| 2080 | 13.5 | 13.4 | 18.6 | 16.0 |
| 2081 | 13.5 | 13.4 | 18.6 | 16.0 |
| 2082 | 13.5 | 13.4 | 18.6 | 15.9 |
| 2083 | 13.5 | 13.4 | 18.5 | 15.9 |
| 2084 | 13.5 | 13.4 | 18.5 | 15.9 |
| 2085 | 13.5 | 13.4 | 18.5 | 15.8 |
| 2086 | 13.5 | 13.4 | 18.4 | 15.7 |
| 2087 | 13.5 | 13.4 | 18.4 | 15.6 |
| 2088 | 13.5 | 13.4 | 18.3 | 15.6 |
| 2089 | 13.5 | 13.4 | 18.2 | 15.5 |
| 2090 | 13.5 | 13.4 | 18.2 | 15.4 |
| 2091 | 13.5 | 13.4 | 18.1 | 15.4 |
| 2092 | 13.5 | 13.4 | 18.1 | 15.3 |
| 2093 | 13.5 | 13.4 | 18.1 | 15.2 |
| 2094 | 13.5 | 13.4 | 18.1 | 15.2 |
| 2095 | 13.5 | 13.4 | 18.1 | 15.2 |
| 2096 | 13.5 | 13.4 | 18.1 | 15.1 |
| 2097 | 13.5 | 13.4 | 18.1 | 15.1 |
| 2098 | 13.5 | 13.4 | 18.1 | 15.1 |
| 2099 | 13.5 | 13.4 | 18.2 | 15.1 |
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