How would you reform Social Security

1. 71

   AJReissigposted 11 years ago

   Social Security began paying out more than it recieves in 2010.  The so called trust fund (which I call so called because it only exists on paper) will run out by 2033.  While I personally like the idea of phasing out the program and allowing people to invest for their own retirement, I am open to other ideas.  How would you reform Social Security so it is sustainable?

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   1. 92

      habeeposted 11 years agoin reply to this

      I kinda like Romney's idea - gradually increase the retirement age and reduce the amounts that the super wealthy get.

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2. 0

   JaxsonRaineposted 11 years ago

   I agree with habee. SS isn't supposed to be a retirement fund, it's supposed to be a fund for people who are too old to work to support themselves.
   
   That definition hasn't changed, even though people are living longer.
   
   I also like the idea of allowing people to choose to invest at least a portion of their contributions in personal accounts... responsibly chosen funds have always far out-performed traditional SS returns... if we had allowed all the baby-boomers to do that, they could get twice the benefits and we wouldn't have the shortfall in the trust that we have.

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   1. 71

      AJReissigposted 11 years agoin reply to this

      I agree with you both. While I don't like the idea of means testing, I don't see any other choice until the program is solvent again. And if we moved to full or partial funding through individual retirement accounts, it may take a few generations to get us out of this mess.

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   2. 94

      wildernessposted 11 years agoin reply to this

      You are mistaken.  Had boomers invested their contributions (and their employers) in long term, safe, mutual funds they would not get twice the benefits.  The number is closer to 10 times the benefits.
      
      I took my SS statement last year and ran a spreadsheet on it, using income figures from uncle Sam coupled with various returns.  Results were astounding - I should be a millionaire several times over rather than the near pauper I am.  I should have an income to dwarf anything I earned in 40 years of labor instead of the pittance I get from the govt.  The numbers I came up were so out of line with what I will get it prompted a hub.

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