GAO: Raising retirement age would hurt the poor

Associated Press

WASHINGTON

Raising the retirement age for Social Security would disproportionately hurt low-income workers and minorities and increase disability claims by older people unable to work, government auditors told Congress.

The projected spike in disability claims could harm Social Security’s finances because disability benefits typically are higher than early-retirement payments, the Government Accountability Office concluded.

The report, obtained by The Associated Press ahead of its scheduled release today, provides fodder for those opposed to raising the eligibility age for benefits, as proposed by the leaders of President Barack Obama’s deficit commission.

“There’s more to consider than simply how much money the program would save by raising the retirement age,” said Sen. Herb Kohl, D-Wis., chairman of the Senate Special Committee on Aging.