Social inSecurity

[WillyBWright]

Congress and Senate are going to be tackling Social Security reform during the upcoming session. Specifically this question concerns opening our individual accounts so that we can invest some of that money in the stock market to get a ruturn from that money rather than just let it sit there (which it doesn't). On the one hand, there is the position that Social Security should be left alone so that there is guaranteed money there when we retire. The other side sees a potential benefit to the individual from stock market gains wheras the way it is now, the money is basically stagnant. What is your position?<br /><br />For you readers outside the US that this doesn't relate to, please don't vote. But I sure would like to hear what program your country has and if it works or not.

 

[WillyBWright]

Re: Social inSecurity

I voted safe since I had to vote in order to see the results. But I'm on the fence on this one. Let's hear your most persuasive pitch one way or the other. I personally hope never to draw a cent. I intend (God willing) to keep on working until the day they pry the wrench out of my cold dead shriveled hand. But I sure want that guaranteed (Hah! That's a laugh!) money if God has different plans.

 

[one more cast]

Re: Social inSecurity

I'm also on the fence so I voted lets do it just to cancel out willy. To bad it wouldn't work to let each person decide for themself.

 

[Terry H]

Re: Social inSecurity

The feds spend the social security money as if it was in the general fund it seems. All the money I put in is gone, and they are counting on the next generation to pay for me. I would rather keep the money and manage it as I see fit. Form someone that doesn't want to depend on the "system" someday.

 

[NathanY]

Re: Social inSecurity

If people would have planned a little better, we wouldnt need social security (with the exception of people that can not work due to a handicapp of some sort). Social Security was never set up to be sole income for retirement, it was set up to SUPPLEMENT a retired persons income. I liked it better when I worked for the city, we did not pay social security, we had our own retirement fund that we paid into if we CHOSE to. SS is just another tax, and thus should be treated as such.

 

[cmyers_uk]

Re: Social inSecurity

Willy,<br /><br />In the UK we have a basic state pension which is paid for out of income tax but its very low and is designed to stop somebody being in poverty if they didnt provide for themselves. With the ever increasing life expectancy and the demands its put on both private and public pension funds the Government is trying to encourage more people to save more towards retirement. Because it seems that people are inherently stupid and dont save it looks like sooner rather than later they will force people to save more.

 

[JB]

Re: Social inSecurity

This a tough one, and one that I disagree with W on.<br /><br />I see three things wrong with the SS system but have very little hope that Congress would dare fix any of them.<br /><br />1. It was intended to be a lifeboat, not a cruise ship. People who have adequate income from other sources (any source, not just wages) should not be eligible to receive benefits.<br /><br />2. Everyone should pay SS tax on all income; not just wages and salary, and no cutoff at X bux.<br /><br />3. Civil Service retirement plans and the Congress' pig-trough need to be equalized with and integrated into SS.<br /><br />It bugs me to see guys who paid SS tax on 1/4 to 1/2 of their income "retire" and draw full benefits while enjoying hundreds of thousands in income from other resources.

 

[mattttt25]

Re: Social inSecurity

i voted let's go, but there's more to it. i think we should all pay and all draw when the time comes. i like the idea of having a choice on how it is invested, but that needs to be limited to keep people from day-trading their benefits away.<br /><br />i would also like to see the ability for taking loans out against your account. maybe this is already an option, have no idea (don't think too much about ss at 29 years of age). low interest loan that you pay back to yourself. the interest could go back into the program.

 

[pjc]

Re: Social inSecurity

to quote WBW:<br /> "On the one hand, there is the position that Social Security should be left alone so that there is guaranteed money there when we retire"<br /><br />deal is that SS funds are not in a "lock box" like Gore wished me to believe. SS funding is done through budgetary process. There is no pile of $100 bills. The "monies" are on paper only.<br /><br />And JB, right on regarding your #2 item, particularly "and no cutoff at X bux". That totally random cutoff point, IMO, really gets under my hide.

 

[BoatBuoy]

Re: Social inSecurity

I voted to allow investments, but at the same time I no faith in my own knowledge, skills, and abilities to invest. Without help and guidance, it would be scary.

 

[Laddies]

Re: Social inSecurity

Right on JB and how would the Congress that messed it up ever have enough brains to repair it, they should have left it alone to begin with

 

[Fly Rod]

Re: Social inSecurity

Take away the politicians retirement package and put them on social security and You will never, ever, see a problem with social security!!!!

 

[jtexas]

Re: Social inSecurity

Too many defined benefit pension plans (mine included) are "integrated" with social security, which means you get xx% of your ending salary based on years of service, minus your social security benefit. Take away SS and most if not all the pension plans in America will be so underfunded as to put 80% of the Fortune 500 into bankruptcy. I'll have to master "Welcome to Wal-mart" in three languages.<br /><br />BTW chief101, SS was designed as a "pay as you go" system with current workers taxes funding the payouts to current retirees. The first SS recipients never paid in a dime.<br /><br />But JB is right, since the benefit is based on earnings but the tax is limited, the fat cats in the corner office pay in the same amount as the middle managers down the hall but collect far more in benefits while having plenty other sources of income.<br /><br />That dang FICA limit has always been just barely beyond my reach!

 

[qaztwo]

Re: Social inSecurity

I voted for investing it, I think I read that its only going to be 5% or a max of $1300. I am not a big fan of government programs. I have few different accounts which I stick money in, one of them is purely stocks. 10 years going strong and each year their value increases on average 15%. Its my money give it back to me and let me decide how it will serve me in the years to come.

 

[McGR]

Re: Social inSecurity

I agree with JB social security should be a lifeboat... There should be some income level at which a retiree is considered socially secure, perhaps $100K or so and therefore considered not eligible for SS. A policy as such would go a long way to rectifying the situation.

 

[agitator]

Re: Social inSecurity

I'm having a hard time buying the idea that if you bust butt all your life and have other hard earned income that places you well above the poverty level you should not be eligible to draw social security. I paid in all my life while working two or three jobs while the porch sitters and tail gaters thought I was a fool for working so hard when there were so many fun things to do other than work. The income redistributors such as Hillary Clinton would readily turn this country into a socialist mecca but I am not ready for that. It's no accident that most socialist countries are struggling. I consider social security to be an insurance policy that I bought and paid premiums on all my life and darned if I think I should be flim flammed out of it when it reaches maturity. My two cents worth!

 

[OLDSPUD]

Re: Social inSecurity

Voted to invest, (which I doubt the boy's in DC have the guts to implement), from what I hear the investment portion is a very samll %, and as proposed only get to choose from very solid investments (gov't bonds ect.) For me this would have been cool 25 years ago, don't see it as having a huge impact at my age. I am not counting on SS to live on. Hopefully I can either die soon enough (guess I need t start smoking) or have my business investments come through for me.<br />I'd love to tell the SS office to shove their program where the sun ....<br /><br />Like I said, don't think much is gonna happen, but with Bush as a Lame duck, maybe he doesn't care about his political future and will push through a change.<br />I love how the Dem's spin this, Like 6% of the FICA will put all the retired folks in the ground.<br />AS a realist and a Repub, I realize that the $ taken now goes to support the retired folks today, but 6%, will not kill the program.<br />They need to do something with medicare also, but don't see that happening soon either.<br />I'm out,<br />Spud

 

[jtexas]

Re: Social inSecurity

There are less complicated ways to keep SS going.<br /><br />Benefit increases are currently just a bit better than inflation. Theory being that wage increases typically stay ahead of inflation so that your purchasing power increases throughout your working life, and why shouldn't that continue in retirement.<br /><br />If they change it so that benefits are indexed to inflation, that would pretty much ensure solvency throughout the baby boomer retirement years.