Registered: Feb 2004
Location:
Posts: 41

According to the Social Security Act, "the purpose of Social Security is to provide insured persons with payments by way of a retirement benefit, survivors benefit, sickness benefit, and to substitute for compensation under the Workmen's Compensation Ordinance, a system of insurance against injury or death caused by accident arising out of and in the course of employment." In order to finance social security, a Social Security Fund was established, financed by contributions made by the workers and their employers. All benefits, administrative expenses, and capital expenditures are paid out from the Fund.

But according to government figures, "while Social Security takes in more than it spends right now, the situation reverses when the baby boom generation (those born between 1946 and 1964) begins to retire in 2010. Unless the system is overhauled, Social Security by 2013 will be spending more than it collects in taxes and will be broke by 2032."

I will be 69 years old in 2032. I will have paid a very large percentage of my income into a government plan and will have nothing to show for it. Accordingly, Social Security payroll deductions should end for anyone born in 1965 or later and be shifted to a 401(K) plan so they will reap the rewards of their investment when they retire. Those born in 1964 and before should continue some Social Security payroll deduction along with some government subsidy to cover the difference.

With all this talk of tax refunds fueled by a government surplus coupled with the enormous corporate tax breaks given out by our government, I am sure we could find enough money to subsidize a transition plan to save our retirement money.

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Registered: Jul 2000
Location: Location Location
Posts: 26420

Amen.

By the time I'm 65, I would imagine I will have lost by far more than I will ever hope to get back in terms of social security (the retirement age by then will likely be in the mid-70s anyway). I consider the money that people currently between the ages of 0 and 60 put into social security is basically akin to dumping it all into a bottomless pit.

The only way that the problems of Social Security and Medicare will ever get solved, unfortunatly, is if some random plauge strikes and kills everybody over the age of 50 in one fell swoop. Barring that, the government will continue to take money, the elderly will continue to demand it (and why not, it's their goddamned money), and the situation will bankrupt itself.

Since I gave up the notion that I'll ever see that money again, I'm more curious than anything to see how it will play out. At some point, I expect the government will raise taxes for everybody to start subsidizing the baby boomers, which'll be just cheeky.

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Registered: Oct 2000
Location: Dumbfucksville!
Posts: 12164

In about 20 years, the United States won't even exist.

Make that 10-15!

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Registered: Sep 2000
Location: Kansas City
Posts: 7504

Joeb is correct, of course.

I proposed the same thing re:Medicare in another thread here about three weeks ago.

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Registered: Nov 2003
Location: North Myrtle Beach SC
Posts: 3353

quote:

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Originally posted by GoFuckYourselves!
In about 20 years, the United States won't even exist.

Make that 10-15!

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what makes you say that ?

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Registered: Aug 2001
Location: Hilbert Space
Posts: 35658

If you have the hypothesis (reasonable enough) that the money that you put into social security will pay for older people's retirement then if you switch current contributions to 401k, you'll have to raise tax to take in the amount of the social security contributions that you are currently making. Which would be honest onthe part of the government, but probably political suicide, given that the US population look set to re-elect someone who has given you tax cuts that mortgage your present against your future.

The demographic timebomb is going to hurt all Western countries. I ca't see any way to avoid the problem although a relaxation of immigration controls would probably help.

Interestingly, our latest generation of kids may predecease their parents (this concern is primarily related to child obesity, I think).

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