Jim’s guest this week is Laurence Kotlikoff, Professor of Economics at Boston University and an expert on the intricacies of Social Security. Professor Kotlikoff discusses the recently passed budget bill (without any hearings or time for public comment) that makes sweeping changes to Social Security benefits, effectively eliminating the File and Suspend and File and Restrict provisions. The bill will reduce the lifetime benefits of millions of Americans by tens of thousands if not hundreds of thousands of dollars. It will do so, in large part, by inducing people to take their retirement benefits far too early in order make up for the loss of spousal, divorce(e) spousal, child, disabled child, excess widow(er) and excess divorce(e) widow(er) benefits. As Professor Kotlikoff mentions in a recently published article, “no retiree will ever again be able to feel their Social Security benefits are safe from some backroom, midnight, rushed change in rules that are designed to meet some budget target or accommodate some politician’s whims.”
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