WATCH: Tiana Lowe breaks down looming solvency crisis as labor shortage continues
Julia Johnson
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The Washington Examiner’s Tiana Lowe warned of the looming solvency crisis in the United States while discussing French President Emmanuel Macron’s attempt to raise the retirement age in France, which has been met with fierce protests.
According to Lowe, something similar could happen in the U.S.
“We’re experiencing the solvency crisis coming for us in under a decade at this point,” she told host Neil Cavuto. “Once that solvency point hits, what that means is that benefits across the board — regardless of income bracket — will be slashed by 20%-25%.”
“Something really does have to give. And in part, that will involve the necessity of raising the retirement age as our life expectancy increases,” Lowe added, noting that in the U.S., life expectancy has “sadly” stagnated.
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“Right now, Macron is using all of his political capital to move that retirement age from 62 to 64. The rest of Europe, it’s closer to 67. Here, obviously, full retirement benefits: 67,” she explained.
She further noted that addressing the solvency crisis will not be easy. “Raising the retirement age in the U.S. to 70, that will only fill in about 10% of that insolvency shortfall once that insolvency point does hit in around a decade,” Lowe said.
She then reiterated that there aren’t lockboxes in the U.S. or France for Social Security and pensions. “You need to make sure that you aren’t having so many people dependent on a shrinking number of workers,” she said.
Lowe concluded by saying, “There needs to be more contribution into the American system.”
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“We’re seeing it right now with massive labor shortages,” she continued. “It is easy for presidents and politicians of both parties to brag about a low unemployment rate.”
“Is that always a good thing when you have people retiring early, with a birth rate that is not increasing — it is falling?” she asked. “Which means our worker population is only going to get smaller and more taxed.”