Two questions regarding privatization of social security accounts.
Social Security, (SS) retirement benefits have a dual purpose; to some extent they protect the finances of individuals (and their families), and additionally our nation's governments.
Prior to the establishment of federal Social Security Retirement benefits, the elderly were, (along with single parent households), among our nation's poorest of population segments. Due to Social Security benefits, SSI, and Medicare, this is much less the case today.
[SSI, (Supplemental Security Income) is operated as a federal charity; it's not funded by FICA, (Federal Insurance Contributions Act) funds.
Let's assume if SS retirement accounts for future generations of retirees, are to be private, (i.e. individual's) accounts, Medicare and SSI will not be eliminated.
Currently, FICA revenue is contributing to pay for current retirees' benefits. If FICA revenues are to be directly directed, or indirectly directed by employees to the enterprise that they're (directly or indirectly) investing into].
How do privatization advocates suggest funding the current retirees benefits after privatization commences? It will be more than 20 year's in the future before the last of today's SS beneficiaries are dead. That doesn't even consider employees that have been paying FICA taxes for as many as 40 years or more, and they have not yet retired.
Question 1:
I don't suppose anyone credible has suggested we fund it all by further increasing our federal debt, but I haven't heard or seen their solutions?
It's to be expected that although some people will choose wisely or fortunately, while others will not. Even the wisest cannot foresee the economy on the date of their retirement.
Currently, SS retirees' initial year's benefits are somewhat determined by their FICA tax contributions over their working years. Their benefits are thereafter annually cost- of-living adjusted. It's somewhat similar to a fund that becomes an individual's cost-of-living lifetime annuity on the date of the individual's retirement.
Question 2, (of lesser concern):
How do advocates perceive retirees' situations and options on and beyond their date of retirement?
Respectfully, Supposn
Social Security, (SS) retirement benefits have a dual purpose; to some extent they protect the finances of individuals (and their families), and additionally our nation's governments.
Prior to the establishment of federal Social Security Retirement benefits, the elderly were, (along with single parent households), among our nation's poorest of population segments. Due to Social Security benefits, SSI, and Medicare, this is much less the case today.
[SSI, (Supplemental Security Income) is operated as a federal charity; it's not funded by FICA, (Federal Insurance Contributions Act) funds.
Let's assume if SS retirement accounts for future generations of retirees, are to be private, (i.e. individual's) accounts, Medicare and SSI will not be eliminated.
Currently, FICA revenue is contributing to pay for current retirees' benefits. If FICA revenues are to be directly directed, or indirectly directed by employees to the enterprise that they're (directly or indirectly) investing into].
How do privatization advocates suggest funding the current retirees benefits after privatization commences? It will be more than 20 year's in the future before the last of today's SS beneficiaries are dead. That doesn't even consider employees that have been paying FICA taxes for as many as 40 years or more, and they have not yet retired.
Question 1:
I don't suppose anyone credible has suggested we fund it all by further increasing our federal debt, but I haven't heard or seen their solutions?
It's to be expected that although some people will choose wisely or fortunately, while others will not. Even the wisest cannot foresee the economy on the date of their retirement.
Currently, SS retirees' initial year's benefits are somewhat determined by their FICA tax contributions over their working years. Their benefits are thereafter annually cost- of-living adjusted. It's somewhat similar to a fund that becomes an individual's cost-of-living lifetime annuity on the date of the individual's retirement.
Question 2, (of lesser concern):
How do advocates perceive retirees' situations and options on and beyond their date of retirement?
Respectfully, Supposn
