by: Author Unknown,
Social Security is not a problem right now; in fact, it runs a large surplus every year. However,
Americans are living longer, and drawing more Social Security payments than they ever put in. Early in the next century, we will be paying out more than we take in, and Social Security will have to dip into its surplus, which is currently used by the federal government for other spending. When the last of the baby boomers retire, the payroll tax would have to almost double to maintain benefits. This creates an undue burden on Generation X-ers, and solutions need to be found to prevent this from happening.
* Citizens should be given a choice on whether or not they wish to invest their own Social Security funds in a high-yield bank account, or the stock market.
Right now, the average American has withdrawn all he has put into Social Security within 7 years of retirement. This forces the everyday worker to support those currently on Social Security with his payments.
. . . What means-testing refers to is that if someone did not need Social Security,
they would not be eligible to get it. The last, and most risky option, is to invest the funds in the stock market. 40% of retired persons depend on Social Security as their only means of income. So on the average, most people never would live to collect their Social Security. This should take effect by the fifth fiscal year after its passage in Congress. 1%, the federal government would save $1 trillion over 12 years. Today, the average American can expect to live to the age of 76. However, every American is not going to invest in the stock market, and those who do are not going to buy the massive quantities of stock that the federal government would. By setting the retirement age at 76, we are giving our average senior citizen 6 years to enjoy his retirement, while policy makers of the past gave him -5 years. If someone feels that they are unable to invest wisely in the stock market, there are other options available.
Americans are living longer, and drawing more Social Security payments than they ever put in. Early in the next century, we will be paying out more than we take in, and Social Security will have to dip into its surplus, which is currently used by the federal government for other spending. When the last of the baby boomers retire, the payroll tax would have to almost double to maintain benefits. This creates an undue burden on Generation X-ers, and solutions need to be found to prevent this from happening.
* Citizens should be given a choice on whether or not they wish to invest their own Social Security funds in a high-yield bank account, or the stock market.
Right now, the average American has withdrawn all he has put into Social Security within 7 years of retirement. This forces the everyday worker to support those currently on Social Security with his payments.
. . . What means-testing refers to is that if someone did not need Social Security,
they would not be eligible to get it. The last, and most risky option, is to invest the funds in the stock market. 40% of retired persons depend on Social Security as their only means of income. So on the average, most people never would live to collect their Social Security. This should take effect by the fifth fiscal year after its passage in Congress. 1%, the federal government would save $1 trillion over 12 years. Today, the average American can expect to live to the age of 76. However, every American is not going to invest in the stock market, and those who do are not going to buy the massive quantities of stock that the federal government would. By setting the retirement age at 76, we are giving our average senior citizen 6 years to enjoy his retirement, while policy makers of the past gave him -5 years. If someone feels that they are unable to invest wisely in the stock market, there are other options available.
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