According to their abstract, "The estimated magnitude of the change in consumption–expenditure depends importantly on the treatment of consumption by adult children of the household. Simulations indicate that the reform could increase retirement ages one year or more, equivalent variations could average more than $4000 per household, and income tax revenues per household could increase by more than $14,000."
However, in order for the Social Security system to break even,
workers would need to pay about one percent higher payroll taxes a year until age 55. Thus, Laitner said:
Households with a strong preference for very early retirement would pay the slightly higher payroll tax before age 55, but leave the labor force before gaining much from the elimination of the payroll tax after that. Late retirees would, by the same token, be big winners. And the point of the reform, after all, is to encourage work by rewarding it.Source: Institute for Social Research, University of Michigan Research Release (August 28, 2012)