Younger workers would face higher retirement ages and wealthier Americans would see their Social Security paychecks grow less quickly than their less affluent neighbors in a plan proposed Tuesday by Sen. Marco Rubio.

Share story

Younger workers would face higher retirement ages and wealthier Americans would see their Social Security paychecks grow less quickly than their less affluent neighbors in a plan proposed Tuesday by Sen. Marco Rubio.

Rubio, a first-term Republican senator from Florida who is outlining a policy agenda as he weighs a presidential bid, also proposed allowing all Americans to join federal retirement accounts. He vowed to protect benefits for older Americans but he added that changes were needed.

“The Social Security trust fund is drying up,” Rubio said, referring to money collected to pay certain benefits.

He said the safety net for retirees will run into debt in 2033 if changes are not made. “This is not a scare tactic. … It is a mathematical certainty if things remain unchanged.”

This week, save 90% on digital access.

Rubio is working to build his policy credentials after a bipartisan immigration plan he helped push through the Senate stalled in the House and caused a backlash from conservatives. Trying to shake that sting and looking ahead to an expected 2016 campaign, Rubio has turned to policy proposals on poverty, higher education and economic growth in recent speeches.

Rubio’s retirement prescriptions come just days after he had a private audience with the Republican National Committee in Memphis, Tennessee, and made his first trip to early-nominating New Hampshire as a potential White House contender.

At the same time, Rubio has been bulking up his political team and working to help candidates on the ballots in 2014, including those in Iowa, which hosts the lead-off presidential caucuses.

Rubio’s speech promised that his plan would not affect older Americans, with many of them nervous as they approach retirement. With so many retirees and those near retirement as constituents in senior-rich Florida, Rubio is mindful of their interests as he prepares for the national political stage.

“Partisan politics in America has always been contentious. But throughout our history, on issues of generational importance, our leaders have agreed to put aside politics for the sake of our people,” Rubio said. “If ever there was an issue worthy of this sort of solidarity, preserving a secure retirement for 21st century seniors is that issue.”

Rubio did not specify a new retirement age but said he would work with lawmakers from either party to find a solution.

“The answer is to gradually increase the retirement age for future retirees to account for the rise in life expectancy,” Rubio said.

He also said wealthier Americans rely less on Social Security than poorer Americans and could deal with their payments growing less quickly. “This isn’t a cut. It is simply a reduction in how fast the benefit will increase,” Rubio said.

“Social Security was never designed to be the sole source of retirement income,” he said.

Rubio’s proposal would make the federal retirement program that Congress uses available beyond government employees. His proposal would make it easier for workers whose employers don’t offer retirement plans, such as 401(k)s and other investment programs. Rubio says his proposals would make it easier for lower- and middle-class voters to plan for their older years.

Specifically, Rubio called for opening the federal Thrift Savings Plan to all Americans. The program, which currently covers more than 4 million civilian and uniformed government workers, has more than $350 billion in its accounts.

But unlike private accounts, the Thrift Savings Plan has lower costs for fund management and is exempt from many regulations commercial programs must follow.

“Opening Congress’ retirement plan to the American people will allow us to bring the prospect of a secure, comfortable and independent retirement into the reach of millions of people,” Rubio said.

But Rubio’s plan would also increase the retirement age for younger workers — who are expected to live longer — while protecting those aged 55 and over. Older workers could still expect to retire as they had planned.

His plan would also suspend the Social Security payroll taxes on those aged 65 or older who continue to work. That move could help him appeal to older workers of all types who choose to stay on the job after they are eligible to receive retirement benefits.

“These seniors have already paid their fair share, and we shouldn’t punish them for choosing to keep working rather than immediately cashing in,” Rubio said.

Custom-curated news highlights, delivered weekday mornings.