Social Security Poll

[vcczar]

new poll

[DakotaHale]

I personally think it’s a terribly inefficient system and a waste of money. In theory, privatization of social security into the US market would be good for the US economy, and give higher returns, but I’m not naive enough to believe everyone can stomach the risk of the equity/bonds markets and would rather have the “safety” that the social security pension offers. Getting rid of the program entirely is a bad idea because we don’t live in a perfect world where every senior saves up enough for retirement. I don’t want seniors living in poverty, even if I highly disagree with their financial decisions.

I do like what Norway (or some other country) does where they build a large invested national fund and once you reach retirement or something you’re entitled to a portion of its withdrawals (and it’s withdrawals are under the average market returns so the fund still grows over time).

I think a privatization option in the current system would be preferable; probably remove the payroll cap to help fund the program. Along with the ability to “opt-out” of the program entirely (with a few exceptions). I think it would be a fair compromise.

[Rezi]

Remove the payroll cap, for sure. Just because you're rich doesn't mean you should just stop paying in at a point.

I wonder if Social Security could be made opt-in. This way, once you start working you can decide to start or stop paying in at any point, and how much you get out once you've retired depends on how long you put money in. If you put in money from 18-45 but opted out, you'll get less money than someone who put in money from 18-65, or someone who put in money from 25-60.

This opt-in system could really be beneficial, because I know lots of people would rather just take that money that would go into social security and put it into the market or IRAs or something, and they should have that right.

Edited March 28, 2022 by Rezi

[vcczar]

1 hour ago, DakotaHale said:

I don’t want seniors living in poverty, even if I highly disagree with their financial decisions.

It isn't always about financial decisions. A lot of it is about financial opportunities, natural abilities and employment that don't translate well to high-paying jobs, or plain bad luck. Certainly, a portion--not sure if it is the larger portion or not--do make bad financial decisions. Those on welfare aren't often at fault, although some portion (whether it is the majority or minority) are. 

[vcczar]

My ideas are much in the line of @Rezi. I'll elaborate more later. I think there should be several pathways to earning social security or welfare in general. 

[MrPotatoTed]

Company pensions have to make a return.  I am fortunate to have a great pension, plus a 401k, and then (if it still exists) social security on top of all that -- and I don't even necessarily plan to retire as I enjoy my job and now that I can work from home, I could move to the Caribbean and continue "working" until the day I die.   Keep the money in the account for wife and daughter after I'm gone. 

But that's unique for me, that I like my job that much.   Other people should have the freedom to retire, and ain't nobody ever going to be able to afford that on social security alone.