This is the Cato Daily Podcast for Monday, June 20, 2011. I'm Caleb Brown.

There are many plans floating around to bring Social Security to solid financial footing.

The latest is from Senators Lindsey Graham Rand Paul and Mike Lee.

Cato Institute Senior Fellow Jagadish Goclay examines the proposal.

You've evaluated a lot of different plans for dealing with Social Security, incorporating aspects that are not present in models that are sort of the

standard models for looking at Social Security finances off into the future.

Grand Paul Lee makes some adjustments to the Social Security program that are recommendations that

seemingly everybody makes when they talk about Social Security reform.

So what specifically do they do?

Well, they do two things.

First, they increase the Social Security normal and early retirement ages.

The normal retirement age is increased from its present 66 to age 70.

It's done gradually beginning in 2018 at the rate of three months a year advance in the normal retirement age

until it reaches 70 by the early 2030s.

And the early retirement age is increased

from 62 to 64, again gradually beginning in 2021.

It means that you have to spend more time

in your careers and the larger increase in the normal retirement age relative to the

increase in the early retirement age means that people who choose to take their benefits at the earliest eligible age

will receive a larger actuarial reduction in the benefit,

their initial benefit,

which then will remain constant

...