kvkkc1...
There may be a problem with that especially short term,
in that if too many "opt out" then there isn't enough
being paid in to cover the graying population.
Moreover, the amount that people opt out would have to
be a small portion to keep the system balanced without
raising rates.
Also in theory, money could be invested
unwisely, as well as wisely, and a greater rather than lesser burden be placed on the system since those who
invested unwisely would need the current SS more.
Regardless some of these solutions IMO just seem to be
politically expedient works arounds, rather than
dealing with the real long term problems.
Social Security was set up as a social insurance net
and has become an entitlement.
SS was intended to provided a safety net for "widows"
and "grannies" who absolutely needed the money, not for
people who needed additional disposable income because
they paid into the system and thus felt "entitled" to it.
Like other insurance (car, medical, home) you pay
hoping you don't have to use it. Social Security
was not originally designed to be an annuity.
Social Security was part of a social contract for all
of us to provide for the insurance for those who
really needed it and has greatly relieved poverty amongst
the elderly. But, like most programs....it lost its primary
intent and has now become the "third rail in American
politics".
SS was never intended to be a savings account or 401k fund.
Bush's solution seems to further miss the point
and intent of the program.
(btw- Are accounts insured and limited to only
certain vehicles per his plan? If accounts are insured,
what funds would bail them out if needed? If investments
are limited to certain vehicles who determines what these
are? If not limited, what precludes people from making
poor investments and losing their money leaving them
with less and putting more of a burden on all?).
Anyway, the AARP and the the strenght of this constituency
preclude any real solutions to the long term solvency of
Social Security which would include 1). means testing
and 2). raising the retirement age.
Neither party if elected, would deal with the real
underlying problems and misperceptions. IMO.
z |
