Quote:
Originally Posted by Stu from NYC
I do not see privatization happening but something must be done to make it sustainable.
It was set up to pay out at age 65 when the majority of people did not live that long.
Now that we are living well past that time enough is not coming in to maintain full payment for more than say 10 years.
Congress and President must either raise retirement age, allow people who want to do so to opt out probably sacrificing what they put in, raise the amounts paid into the system either by rate or income after which no more payments into the system or allow those who wish to to invest part of their money in some sort of mutual fund assuming some degree of risk.
Instead both parties would rather kick the can down the road. At some point action will have to be taken and the longer they take to do so the more difficult the fix will be.
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Allowing people to opt out would end Social Security. Do the math. The system is designed so that high income people get ripped off for the benefit of low income people. So, if you can opt out, the high income people would opt out, and the system would collapse. Social Security is a cleverly designed welfare program.