Lawmakers are considering legislation that would delay eligibility for full Social Security benefits until age 70 for millions of young Americans.

Today the full Social Security benefit retirement age is 66 for people born between 1943 and 1954.  It gradually increases by 2 months per birth year until reaching age 67 for those born in 1960 or after.

I’m only 33, so if the retirement age is delayed to age 70 I will certainly be affected.  But you know what?  I think I’m ok with it.

Let’s face reality.  The Social Security program is in serious trouble.  According to the Trustees Report, the Social Security trust fund is scheduled to run out by 2037, at which point there will only be enough taxable income to pay about 75% of scheduled benefits.

It’s obvious that something needs to be done, and since life expectancy is much higher today than it was back in FDR’s day it makes sense that the retirement age is adjusted accordingly.

But I don’t think that’s enough.  I’d also like to see an increase in the taxable maximum.

Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $106,800 (in 2010), while the self-employed pay 12.4 percent.  So if you make less than the taxable maximum your entire salary is taxed.  But if you make more than that, anything over the maximum is not taxed.

I’ve never really understood why the burden of paying for Social Security was almost entirely on the shoulders of the working class.  Why should a middle class worker making $106,800 pay the same amount ($6,621.60) in Social Security taxes as LeBron James?

You don’t think the wealthy are collecting the Social Security benefits they’re entitled to?  Of course they are…they didn’t get wealthy by making poor financial decisions and leaving money on the table.

I say up the taxable maximum.  It will increase the amount of taxable income without devastating the middle class and working poor.  And it will help insure that Social Security benefits are still around for the people who need them most.

What are your thoughts?  Are you willing to push your retirement back a few years or pay more in taxes if you earn over the taxable maximum?

The road to retirement is long and winding. It’s filled with speed bumps, potholes and dead ends. Some of the obstacles we face are largely out of our control. A natural disaster, job layoff, or debilitating illness can lead to financial ruin and there is little you can do to predict or avoid them.

But there are many other potholes you can avoid with careful planning and wise decision making. If you can avoid the seven pitfalls below you will be in better shape than most.

1. Not calculating how much money you will need in retirement. Hopefully you are already setting money aside for your golden years, but are you sure it will be enough? Most people seriously underestimate how long their retirement will last and how much cash they will need to support themselves. They run the risk of using up their savings too soon.

Since each of us will have different needs and circumstances come retirement, I can’t give you a magic number that you need to save each month. But there are dozens of online calculators that you can use to determine your optimal savings rate.

2. Not starting early.  When we’re young and just starting out, retirement seems like it’s centuries away. We tell ourselves that we’ll have plenty of time to build our savings later, and that we need to worry about the mortgage and the kids for now. But before you know it a few years slip by and retirement is a lot closer than you realized.

Is it too late to start saving? No.  It’s never too late. But you may have already missed out on years of savings and compound interest.  Start early.  Start today.

3. Not taking advantage of all the tools at your disposal.  While saving for retirement can seem like a daunting task, you do not have to go it alone. There are tools that will help you grow your savings quickly.

Does your employer offer a 401(k) plan? Contributing to a 401(k) not only adds to your savings of tomorrow, it lowers your tax bill today. That’s a double winner.

Plus,  if your employer offers matching contributions your savings will grow even faster.  Say you’re earning $35,000 a year and you contribute 10 percent of your salary ($3,500) to a 401(k) plan. A typical employer match would be around 50 percent on the first 6 percent of your compensation. In this case that would amount would be $1,050. The result is that by contributing $3,500 of your own money, you have received a total of $4,550 toward your retirement. That’s just too good of a deal to pass up.

If you are not eligible for a 401(k) plan, you can contribute to an Individual Retirement Account (IRA) instead. You won’t receive any matching contributions, but your account will grow on a tax-deferred basis until you retire.

4. Cashing out early. The days of spending one’s entire working career with the same company are over. In today’s world, it is common to jump from one job to another.  But far too many workers cash out their 401(k) plans when they switch jobs. Not only do they wipe out the retirement savings they had built up, but they have to pay income taxes on it too. Plus, if they are under the age of 59 1/2 they will pay an additional 10 percent penalty tax.

It just doesn’t make sense to save up your money for retirement and then cash it out early. Depending on your plan’s provisions you may be able to leave your 401(k) with them even after you go, but this is usually not your best option. Instead, roll your balance into your new employer’s 401(k) or into an IRA.  You won’t have to pay any taxes if you elect a rollover, and your retirement nest egg will remain intact.

5. Taking bad advice. Not everyone has the time, desire, or expertise to plan out their retirement for themselves. There’s no shame in admitting you have limitations and letting a financial advisor help you.

But choosing the wrong financial advisor can be tricky, and if you make a poor choice it’s you that will be  sorry.  Don’t just pick a name out of the yellow pages.  Ask your friends and family for recommendations.  Then interview them carefully.  Make sure they have experience and a winning track record. Discuss your goals and ask about their investment strategy. Are they too conservative or too risky for your taste?

How do they get paid?  Do they receive a commission on all trades or an hourly fee?  Do they have relationships with financial companies that could cause a conflict of interest?   These are all important things to know.

6. Paying too many fees. There are always costs involved in investing.  Execution fees, asset-based fees, expense ratios, and fees paid to a financial planner or broker are just a few of the expenses that will drag down your savings.

You can never avoid fees altogether, but you can minimize them. Look for investments with low expenses.  Index funds generally charge much less than mutual funds that make a lot of trades.

Shop around and minimize expenses.  Keep in mind that the more you pay in fees, the less you will have at retirement.

7. Retiring early. When we’re working, retirement seems like the Holy Grail.  We can’t wait to kick off our shoes and enjoy doing whatever we want.  But after awhile some retirees get bored.  By then, it’s too late to return to the workforce.

Before you decide to retire for good, make sure you are ready.  Sit down with your employer and ask if you can scale back your responsibilities and hours to give yourself more free time without retiring.  Or perhaps work on projects as a consultant instead of a full-time employee.

And remember that the longer you work and receive a salary, the longer you can go without tapping into your retirement savings.