The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retire Early CampFIRE

URL:  http://boards.fool.com/pay-benefits-to-those-that-need-them-to-keep-15464355.aspx

Subject:  Re: Help! My Social Security is in Lucent Date:  7/28/2001  8:46 PM
Author:  Amphian Number:  46673 of 757403

Pay benefits to those that need them to keep afloat ---there should be money to do that. But the well off middle class who like to talk about personal responsibility (like myself) should step up to the plate and offer to take the hit on Social Security benefits to prevent working people from being further exploited.

While I agree that something needs to be done, what is the incentive to work toward and plan for retirement if you know the benefits will be eliminated completely if you are "too well-off"?

For example, what if the government decides that having more than $X in retirement savings means that you do not need social security. The smart couple with trustworthy kids would each give the maximum gift-tax-free amount a year to each of their children with the understanding that they would get it back in some form (gifts, free housing, etc.) after retirement. They would plan out their retirement so that they finished spending any savings down to $X before they filed for benefits. They would even be able to quit working (and paying SS taxes) earlier.

I think the government could get away with cutting benefits somewhat, but eliminating them entirely for the middle class probably won't work. It's too bad - I'd like someone to shut down this pyramid scheme. I'll just be happy if any politician is willing to commit political suicide and start dealing with the problem now, when smaller changes can still have an effect.

Amphian



Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us