A previous post made reference to a clearly written discussion of funding problems with Social Security and the pros and cons of various solutions to the problems, which discussion can be found at www.bc.edc/crr. One of the solutions suggested was to raise the retirement age for receiving full benefits.  It appears that a delay of only a few years would provide substantial relief for the funding pinch. Rather than just pushing people into starting benefits later, why not give them an incentive to do so? Suppose people were encouraged to work longer and defer the commencement of benefits by having lower income taxes on amounts they earned after age 65? If income taxes on the first $50,000 of income were 10% and the next $100,000 were taxed at 15%, people might have an incentive to delay the start of benefits. There might also be lower Social Security taxes after age 65, but the combination of continuing to pay in and delaying the payment of benefits could be a factor in helping to preserve Social Security. There would have to be some increase in benefits as a result of the delay, but there could still be a net benefit to the Social Security system. This proposal could also alleviate concerns about too many skilled workers in the Baby Boom generation retiring within a few years.