It's quite simple. Allow all baby boomer to divert 50% of current FICA Taxes to pre-tax qualified Indexed Annuity, which protects principal + 3% growth on the down side & allows up to 85% of S&P 500 returns from point to point over 9yrs.(i.e. Average Boomer FICA Tax=$9K X 50%=$4500/yr X 15 yrs. until retirement at 8% conservative return = $131K). You agree to freeze your Social Security account benefit where it is now(calculated just like a Defined Benefit Pension Plan), so your Social Security benefit will be less than the person who waives this option & collects his/her normal Soc.Sec.benefit at Age 62 or later. Congress raises the maximum levels of contributions for all qualified retirement plans by at least 25% overnight, & people will start funding their own retirement again through voluntary pre-tax contributions. Then, when massive numbers of baby boomers retire, they will be paying Federal Taxes on distributions from their Qualified Plans, collecting less guaranteed Soc.Sec.benefits, but withdrawing from their Self-Funded side of their Soc.Sec.Acct. from private insurance carriers. Note all $$ contributed to their Qualified Plans & their Indexed Annuities were invested in US corporation stocks & bonds thereby continuing to fuel the capital investment/expansion necessary to keep US economy growing. FICA Taxes don't help our economy, only investments/savings helps any economy grow. Medicare must be overhauled by allowing all private insurers to create a Medical Fund to take over the benefits payments with the collection of all current Medicare Taxes. The Government must be removed completely from Medicare & Medicaid administration, before it puts the Health Care Providers(Hospitals & Doctors) into a depression. As a payback to society, Pharmecutical Companies will have to provide $5,000/yr per Retiree of RX drugs at their mfg.cost(no profit or return of RD cost) & distributed through MD offices, with the Doctors in charge of allocating to which people need RX first. In return,Drug Cos. will be given slightly longer patents on Brand name drugs. These changes must be integrated & enforced together or the problem will only get worse. Politics will be removed from these changes when private enterprises take over government run programs. Drug users & unemployed homeless people will not qualify for Social Security Disability, but will be put to work in privately sponsered work programs(garbage collection, street sweeping, parks maintenance, road maintenance, forest manangement, snow removal, etc), which the various levels of government will outsource to private enterprise & fund with the current taxes collected. These economical displaced people will again become productively employed, pay taxes, & contribute to society. All prisoners in federal & state institutions will go through mandatory vocational training & come out of prison a productive skilled worker with a job waiting upon release(employment & drug sceening is required or person will be returned to half-way house for additional trainning under more strict supervision). If mentally challenged people can work at McDonald's, then nobody has get a free pass, & everyone pays a flat Federal tax, but that's another story.
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