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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Alighieri who wrote (215090)	1/16/2005 9:45:01 AM
From: steve harris	Read Replies (1) \| Respond to of 1574509

considering SS is already a negative return for my contributions, I'll take my chances in the stock market.....

To: Alighieri who wrote (215090)	1/16/2005 11:21:32 AM
From: RetiredNow	Read Replies (2) \| Respond to of 1574509

Good article. Thx for the post. However, what I noticed is that Great Britain's problem was much more complex. They had various overlapping pension systems that combined served to provide retirement for people. We have just one system. I believe that the best way to reform it is to keep many of the existing restrictions of the current system, including the restriction on withdrawals. Plus, I would limit drastically what can be invested in. I would only allow target-date funds or T-Bills. That would limit the risk of people being their own worst enemies. The other thing I'd do is make sure tha an individual's benefits are reduced only as much as the NPV of the diverted amounts. That way, we could ensure that no one is worse off. One of the major reasons for the failure of the U.K. system was that it was sold the pensions to people who would not benefit from it. The way they had set up the privatized part would only benefit the very young or the very rich. Our system is different. It's simpler. Privatization, though, does benefit the young more in that they are the ones that will benefit from the higher returns. Older people should have a larger percentage of their assets in bonds and cash. So as I've said before, we can solve this problem, but it will take actuaries and finance people to solve it, not the buffoons in Congress.