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Author: decath Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 61315  
Subject: Re: Happy Birthday Social Security Date: 8/17/2007 9:09 AM
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Jeanwa:
...but who would pay for this "insurance". The poor and disabled can't afford to. I know it probably sounds "corny" to some, but I know of some people that take pride in the fact that they have worked for 30-40-50 years and paid into Social Security and think of it as their retirement. They aren't asking for more benefits...like SP seems to think they are. They get by and think they are doing pretty well. I certainly wouldn't want to take that pride away from them by calling Social Security welfare.

My dad just started drawing SS last year when he turned 62. I think he would be offended if someone told him he was on welfare. He was one of those people that was always earning just under the max income threshhold where you stop having to contribute. So he never benefited from that, representing the atypical person that paid the max into the system, yet is receiving the least amount from a contribution/return basis.

He and mom were 10% savers all their lives so by the time they retired at 62, I'm sure they were close to a mil in investments. I don't know what their SWR is but with he and mom's SS, they are comfortable. They both saved all their lives, lived clean lives and counted on that SS to be there when they retired.

According to SP's plan, they would get the shaft and see their retirement income drop from 60k to 40k (according to my estimates). That might not seem like much of a sacrifice but it would be the ultimate backstab to millions of others in like situations.

I understand SS will be under a strain. But stiffing the millions of us that have been paying into it all our lives is simply an unacceptable alternative. I think there would literally be blood in the streets with the SP solution.

If SS is in trouble, then the sacrifices should be shared by all. IOW's, an across the board reduction in benefits to all income classes and a raise in the retirement age. If you can't live on that, then you simply have to stay working and saving until the combo of SS and savings can sustain you.

I do agree with SP that raising the SS tax should not be done. The 14% (employer/employee) is to high IMHO already.

The older I get, the less willing I am to sacrifice what I've paid in. I've had a job since I turned 15. This January marked my 30th year of paying into the system myself. I would not think to kindly of people who lived a lifetime of consumption without ever saving getting to live off a life time of my SS contributions while I would be getting jack.

I doubt I'm the only one with those feelings.

decath
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