"Tweaking" Social Security

[chanel]

On its current path, Social Security is projected to run out of money by 2037, largely because of baby boomers reaching retirement.

“Modest changes can be made over time that will keep the program in surplus,” Kohl, D-Wis., told the Associated Press. “They are not draconian, as the report points out, and they can be done and will be done.”

The committee is scheduled to release its report today. The report, obtained by the Associated Press, lays out options for fixing Social Security but doesn't endorse any of them.

Kohl said legislators will probably combine several options to ease their impact. No action is expected this year, with midterm congressional elections looming in November.

Social Security is financed by a 6.2 percent payroll tax on wages below $106,800. The tax is paid by workers and matched by employers.

The entire $5.3 trillion shortfall over the next 75 years would be wiped out if payroll taxes were increased by 1.1 percentage points for both workers and employers. It would also disappear if Congress started taxing all wages, not just those below $106,800, the Senate report said, citing projections by the actuaries at the Social Security Administration.

On the benefits side, more than three-fourths of the shortfall would vanish if Congress reduced annual cost-of-living increases by 1 percentage point each year.

About 23 percent of the shortfall would be gone if Congress gradually increased the age when retirees qualify for full benefits from 67 to 68. Nearly a third of the shortfall would disappear if the full retirement age were gradually increased to 70.

The panel's report will be presented to President Barack Obama's deficit reduction commission, which is expected to review all programs in the search for savings.

Report says Social Security needs only ‘tweaks' | Business | Chron.com - Houston Chronicle

Predictions?

 

[Toro]

Social security is untenable as is and must be reformed. The math does not work.

This is what I suggest.

- Social security should be run like a real pension plan, investing in stocks, bonds, real estate, etc. The current plan is nothing but government government obligations earning about 3% per year. There are no other pension plans in America I can think of that invests in nothing but government debt. A typical pension plan earns 6% to 8% per year. The difference between earning 3% and 7% per year is staggering over time. $1 invested at 3% compounded in 50 years will equal $3.83. $1 invested at 7% compounded over 50 years will equal $28.46. You solve a lot of the social security problems this year.

- Raise the retirement age. The average life expectancy of people receiving social security in 1970 was about 5 years. Now it is 15 years.

- Means test. Until the math gets solved, people above a certain wage should receive less, in line with the actual amount they contributed over the years.

- Allow people, if they so choose, to manage their own social security. Eventually, this is how all pensions will be structured. It offloads the liabilities of the state onto the individual.

Taxes should not be raised. People who receive social security have not put in enough money to justify their payments. Social security is an inter-generational transfer of funds from the young to the old. It should not be made more so.

 

[Skull Pilot]

I suggest you allow people to keep that 15% of their income in a privately held account and keep the government's slimy hands out of the cookie jar.

 

[ihopehefails]

I would like to up the min retirment age for S.S. at 71. That would save a lot of money right there as less people draw from it and more people contribute to it.

 

[keee keee]

Easy fix here. Put all senators and congressmen in this system!!! It would not be broken and broke if they were in it!!

 

[keee keee]

This is the first year we sent out more money than came in. Isn't it funny a democrat was in office when this happened!!!

 

[Polk]

I suggest you allow people to keep that 15% of their income in a privately held account and keep the government's slimy hands out of the cookie jar.

If the government forces them to hold it an account, how is that any different from the current system? You still don't have any real measure of control over the money, except increased exposure to risk (and if a downturn occurred, the government would end up bailing seniors out).

 

[Oddball]

I suggest you allow people to keep that 15% of their income in a privately held account and keep the government's slimy hands out of the cookie jar.

If the government forces them to hold it an account, how is that any different from the current system? You still don't have any real measure of control over the money, except increased exposure to risk (and if a downturn occurred, the government would end up bailing seniors out).

And that's really what this is all about: Control over the hoi polloy by an elite few, who ostensibly "know better" than they.

 

[Polk]

I suggest you allow people to keep that 15% of their income in a privately held account and keep the government's slimy hands out of the cookie jar.

If the government forces them to hold it an account, how is that any different from the current system? You still don't have any real measure of control over the money, except increased exposure to risk (and if a downturn occurred, the government would end up bailing seniors out).

And that's really what this is all about: Control over the hoi polloy by an elite few, who ostensibly "know better" than they.

My God, your reading comprehension is terrible.

 

[keee keee]

exposure to risk? They take my money misuse it and I get nothing when I retire. That's what is happening now!!!! Name one program the govenment runs that is not full of fraud, waste, and corruption and is not broke or going broke in the near future? And now I will have to go to these losers for my healthcare thanks to Obama and DEMOCRATS!!! With their great track record I have a lot of faith in them!!! The real kick in the ass is they senators and congressmen exempted themselves from these programs.

 

[Avatar4321]

It needs to be tweaked out of existance.

 

[Oddball]

If the government forces them to hold it an account, how is that any different from the current system? You still don't have any real measure of control over the money, except increased exposure to risk (and if a downturn occurred, the government would end up bailing seniors out).

And that's really what this is all about: Control over the hoi polloy by an elite few, who ostensibly "know better" than they.

My God, your reading comprehension is terrible.

My reading comprehension is just fine.

The end game is control...It's nice to see someone of your ilk finally admit as much.

 

[Old Rocks]

Hell, just put the 6.2% I pay on all income, and then the problem is gone. Probably be able to increase the bottom end of the benefits to a living level, also.

I do believe that the SS system will not run out of money in 2037, but will have the reduce the benefits to 75%. Damn, that is going to upset me, really cut into my traveling plans, as I will be 94 then.

 

[Old Rocks]

And that's really what this is all about: Control over the hoi polloy by an elite few, who ostensibly "know better" than they.

My God, your reading comprehension is terrible.

My reading comprehension is just fine.

The end game is control...It's nice to see someone of your ilk finally admit as much.

Hey Doodeee...... Work real hard, I really enjoy the extra two grand a month that I get now, in addition to may regular wages.

 

[boedicca]

We need to move towards a Chilean style model: Payroll deductions go into personal accounts which are owned by the individual and an asset that can be passed along to heirs.

The government has proven that it cannot be trusted to preserve funds in a Trust Fund. All SS and Medicare taxes have done is to provide a Huge Pile Of Other People's Money for our political class to abuse for the benefit of themselves and their cronies.

 

[Oddball]

My God, your reading comprehension is terrible.

My reading comprehension is just fine.

The end game is control...It's nice to see someone of your ilk finally admit as much.

Hey Doodeee...... Work real hard, I really enjoy the extra two grand a month that I get now, in addition to may regular wages.

So you're a proud parasite...Big fat hairy deal.

BTW, I run my business ventures through corporate and trust structures so I lawfully avoid FICA withholding...Sorry, chump.

 

[kyzr]

It needs to be tweaked out of existence.

What about the $300,000 or so each of us contributed to the US pension plan? What are we supposed to live on after we retire?

Tweak this.

 

[Oddball]

It needs to be tweaked out of existence.

What about the $300,000 or so each of us contributed to the US pension plan? What are we supposed to live on after we retire?

Tweak this.

I remember the famous words of Otter from Animal House...

"Ya fucked up....Ya trusted us".

 

[SuMar]

Social Security should be paid to those who earned a pay check up until retirement age.

 

[Skull Pilot]

I suggest you allow people to keep that 15% of their income in a privately held account and keep the government's slimy hands out of the cookie jar.

If the government forces them to hold it an account, how is that any different from the current system? You still don't have any real measure of control over the money, except increased exposure to risk (and if a downturn occurred, the government would end up bailing seniors out).

It's different because the government won't be able to use your retirement money as a slush fund.

And investments are only as risky as you want them to be. You do realize that not everyone lost money during the last crash right?