Social Security Reform in the news

[.RJ]

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But the administration is leaning toward letting workers divert 4 percentage points of their 6.2 percent in payroll taxes ÔÇö almost two-thirds ÔÇö into investment accounts, up to $1,000-$1,300 a year, the official said. The remainder of the workers' payroll taxes would continue going into the system.


Graham's plan calls for annual contributions to be capped at $1,300, while the commission proposed a $1,000 cap.


Bush "has not endorsed any specific proposal," White House spokesman Scott McClellan said. "We are looking at a number of ideas for strengthening Social Security and will continue working closely with congressional leaders to move forward in a bipartisan way to get it done this year."

Thoughts? I'm not going to count on SS to support me when I'm old.

[G.Irish]

Sweet, I'm gonna stack my SS into some nanotech and aerospace stocks. I'll be a BAZILLIONAIRE!!! And by the time I'm 65, scientists would have figured out a way to slow down or reverse aging...Spring Break 2045 BAYBEE!!!

[JohnC]

Interesting. Will this will impact the amount of money that the government borrows from the Social Security trust? As in, will the money still be available to the government, or will it be in truly private accounts?

[.RJ]

I think this is a way of phasing out ss contributions, so that the fed will have to pay out less when you hit retirement since wages increase faster than inflation.

[Andy]

I think this is a way of phasing out ss contributions, so that the fed will have to pay out less when you hit retirement since wages increase faster than inflation.

Hey RJ, are you positive wages increase faster than inflation? I think inflation is product of wage/price levels i.e. buying power. So from what little I've read, I think American buying power, as a whole, has been on the decline even with the Tech boom taken into account.

SS is definitely a problem, but isn't Iraq, the growing deficit and a weakening dollar of more importance? JDM parts will cost more, yo.

[.RJ]

The weakening dollar, iraq, the cost of steel, trade tarriffs are all of more importance than this, but subject for another topic

[white_2kgt]

I think this is a way of phasing out ss contributions, so that the fed will have to pay out less when you hit retirement since wages increase faster than inflation.

Hey RJ, are you positive wages increase faster than inflation? I think inflation is product of wage/price levels i.e. buying power. So from what little I've read, I think American buying power, as a whole, has been on the decline even with the Tech boom taken into account.

SS is definitely a problem, but isn't Iraq, the growing deficit and a weakening dollar of more importance? JDM parts will cost more, yo.

If inflation is increasing faster than your salary then you need another job.

--chad

[Feersty]

My retirement fund hooked up to teh S&P 500 is doing very well.

[Ginger]

When we're old it would be nothing if next to impossible to receive any kind of SS check... it's just the run of the numbers.

The interesting thing about inflation is that if you examine the buying power of most individuals it is much higher than the sum of their wages. Our credit pyramid is really great about naturally causing inflation. That's not necessarily a bad thing, it just is what it is.

[.RJ]

When we're old it would be nothing if next to impossible to receive any kind of SS check...

It was never meant as a means of supporting retirement - it was meant as a supplement. Generally, I dont really support such socialist agendas, but we're fucking stuck with it now so lets try to fix it and phase it out over the next 60 or 70 years. What bush is attempting to do isnt a wholesale reform.... if you look at the numbers - a cap of $1000-$1300 per year - you will probably invest way more than that on your own. IMO, the government should invest some of the funds to create a higher rate of return to cover the shortages 40 years from now, although that creates another problem - mass influx of funds into the investment market.

[Ginger]

IMO, the government should invest some of the funds to create a higher rate of return to cover the shortages 40 years from now, although that creates another problem - mass influx of funds into the investment market.

Well, that, and that any kind of investment which would offer a high enough return would probably be pretty volatile.

[.RJ]

Well, that, and that any kind of investment which would offer a high enough return would probably be pretty volatile.

You dont need a high return if you're investing now.

[John]

Bumping this thread from last week since there was an interesting Q&A session on WP.com this afternoon.

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[Ryan T]

By the time I'm 65 I bet I receive enough Social Security to buy one gallon of milk a week. And with dairy prices staying high, it may be a gallon every two weeks.

[Kaan]

by the time i'm 65 i'll only use my Social Security to pay to taxable income on my IRA, quarterly! plan ahead