The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: Re: Help! My Social Security is in Lucent||Date: 7/30/2001 12:46 AM|
|Author: intercst||Number: 46753 of 726189|
<<<<Most of the changes would be phased in so that they would not affect anyone currently receiving retirement benefits or within a decade of retirement.>>>>>>
This is exactly the problem. AARP is too powerful and no one in politics dares to challenge them.
The folks that all the serious legislation is protecting from "sharing the pain" are already those who are by FAR getting the best deal from Social Security.
They are the ones who had much lower ceilings on the payroll tax (even adjusted for inflation); they paid FAR less than 6.2% of their own money. They are the ones who will (on average) recover all their contributions, including a fair level of interest, in about 5-6 years -- unlike their children and grandchildren who are likely to never do that, even if they live to be 90.
Yet it's their children and grandchildren -- the ones who, even if NO changes are made, are ALREADY more screwed for Social Security than their parents and grandparents -- who are targeted for even MORE screwing.
If there's pain to be had in fixing Social Security -- to the extent that a Ponzi scheme can be "fixed" other than by abolishing it -- it MUST be shared across all generations, not just those who aren't eligible to be part of the AARP juggernaut.
And by NOT sharing the pain fairly, they make the "solutions" much more draconian and unbearable than by spreading it around.
Congratulations on identifying the source of the problem!
Many folks collecting Social Security benefits today are collecting far more than their FICA contributions -- especially if they live into their 80's or 90's. Baby boomers complaining about the fact that Social Security will be less when they retire should look to their parents for relief, rather than saddling younger workers with higher taxes to pay their Social Security benefits.
One bright spot for baby boomers with even moderately wealthy parents; presumably your parents' estate (and your inheritance) will be slightly larger since they got more in Social Security benefits than they paid in.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|