Mark Hendrickson, a fellow at City Grove College, has a commentary in The Wall Street Journal where he criticizes the current law that say if a person postpones receiving Social Security from age 66 to age 70, they would receive an 8% annual rate of return over the four-year period. That is, waiting until 70 would mean receiving a payment that is about 32% higher than if one started getting monthly checks at 66. Instead, Hendrickson advocates basing the increase on the growth of GDP. He writes:
It’s time to do away with the unmerited, unaffordable gift of 8% annual raises to seniors who delay collecting Social Security. Congress should amend the program so that its annual raises track GDP. If GDP increases 4.5% in a year, then seniors who have deferred collecting will receive a 4.5% increase in their eventual benefit. If GDP shrinks 2%, then so would the accruing benefit. Such a change won’t happen in the near future, as both presidential candidates have shied from embracing real reform. Eventually, however, it will become unavoidably obvious that this automatic raise for millions of seniors is an unjustifiable fiscal extravagance.