Leading Republican wants raise in Social Security retirement age

WASHINGTON – A leading Republican senator is proposing to raise the Social Security retirement age from 67 to 68, while Democrats maintain their opposition to the president’s plan to overhaul the retirement program with private investment accounts.

Nebraska Sen. Chuck Hagel’s plan would raise the age retirees could receive full benefits beginning in 2023.

“We are living longer,” Hagel said Sunday on CBS’ “Face the Nation.” “So when you look at the total universe of this, I think that makes some sense to extend the age.”

But some leading Democrats said they could not support Hagel’s plan because he would pay for private accounts by borrowing and increasing the nation’s deficit.

Sen. Edward M. Kennedy, D-Mass., told ABC’s “This Week” that would be “a great threat to seniors” because it would raise interest rates.

President Bush plans to travel across the country this week as part of his 60-day push to persuade a skeptical public to support personal retirement accounts. The president’s plan would allow workers under age 55 to divert up to 4 percentage points of their Social Security taxes into private stock and bond investment accounts in exchange for lower guaranteed future benefits.

White House counselor Dan Bartlett said while polls show most Americans don’t like the idea, most of the opposition is coming from people over 55 who won’t be affected by it. He said Bush will try to reassure older Americans that their benefits won’t change.

Democrats vow to fight unless Bush is willing to change his plan to divert Social Security funds into private accounts.

Democrats also object to Bush’s call for personal accounts because they would not make Social Security solvent. Treasury Secretary John Snow, appearing on ABC, maintained personal accounts still must be part of the solution.

“They don’t in and of themselves bring those lines together,” he said. “But we’ll never get a fair and equitable solution to the Social Security problem unless personal accounts are an integral part of the solution.”

Hagel’s plan would allow workers 45 years old and younger to keep their guaranteed Social Security account, but set up a voluntary program of personal accounts that could supplement their retirement income.