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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (211140)	12/10/2012 11:40:26 AM
From: epicure	2 Recommendations Read Replies (4) \| Respond to of 541851

The difference is the money isn't there and it's not invested. It's not a retirement account. It's a pixie dust account.

To: Wharf Rat who wrote (211140)	12/10/2012 11:51:50 AM
From: research1234	2 Recommendations Read Replies (1) \| Respond to of 541851

There is a big difference between SS and a 401(k) or other investment-based retirement plan. The SS system is a generational income transfer program. Contributions made by workers are used to pay benefits to current retirees. In the old pre-SS days, the generational transfer was very personal - grannie moved in with the kids or grandkids, and lived off their generosity.. grannie had no real personal freedom, and if her kids or community couldn't (or wouldn't) care for her, she died in abject poverty. SS is all about providing a floor benefit that allows folks to retire with a bit of dignity and personal freedom. The current SS trust fund is a temporary measure designed in the 80's, because otherwise the baby boomer retirement benefits could not have been funded by the next generation of workers without a massive taxation problem. Cutting SS would break the generational promise that is inherent in its design, and put us on a path that will lead to higher rates of elder poverty. If cuts really start to get traction, I would expect SS experts to make these arguments much more robustly.

To: Wharf Rat who wrote (211140)	12/10/2012 1:05:33 PM
From: JohnM	Respond to of 541851

Good post. SS is pension; medicare is life long health insurance. I keep paying on it after retirement.

To: Wharf Rat who wrote (211140)	12/10/2012 1:22:11 PM
From: bentway	1 Recommendation Read Replies (1) \| Respond to of 541851

"There is no difference." There IS a difference. YOUR money is working in your 401k. YOUR money is making money. Hopefully, at least 7-8% a year. If the market collapsed, it could dramatically shrink. SS is a generational transfer program. YOUR contributions paid for your parents and their generations SS checks. The only money it made was on the interest from the money it loaned the government when they borrowed it, a paltry point or so of interest. But, it will ALWAYS be there, despite the naysayers - that began when it was conceived. They've ALL been wrong.