The fact is that our Social Security program was based on the German Railroad Retirement Program. Their program had age 65 to begin collecting benefits. When SSI was started in the USA, the average life expectancy was 59, not 62, and like Germany our program was established at 65. The average person in America was NOT EXPECTED TO COLLECT A DIME, for the average person would be dead!
What screwed that plan? Anti-biotics! Anti-biotics have largely prolonged life to 78 years on average in the USA, and over the years, they introduced early SSI benefits at age 62.
Another UGLY TRUTH fact, the federal government has changed the retirement program for employees. Used to be one got about 2% for each year worked based on the average of the top 3 or 5 years of income. The new retirement program has federal employees collecting 1% for each year worked, and they are now eligible for SSI. That means a sh*t ton of federal employees will be subjected to SSI to survive in retirement.
Prior to 1984, Social Security Tax was I believe 4.2%. They raised it to 7.65 when one adds in the Medicare Tax. That is 7.65% paid by employee, 7.65% paid by employer, and 15.3% paid by self employed. And the income max gets indexed up every year, has gone from $32,000 in 1984 to I believe $144,000 for this year. Despite this being many times more than what was being paid in prior to 1984, it still isn't enough! if you will recall Sen Bob Dole said they solved the problem with Social Security and Medicare by funding it properly.
Another fact, today, only about 5% of the people retiring in the USA have the money needed to maintain their lifestyle when they retire. For the other 95%, they are largely reliant on Social Security. Once again the program is insolvent. And we are trusting this self serving cabal to do what is right, when EVERYTHING they have done for 50 years is flat out wrong.
Yes, it would be better for these stinking politicians to change the program to where there are individual accounts that are funded for the workforce. How to go about it? Phase in an approach where an added tax of 1% years 1-3, going to 2% years 4-6, 3% in years 7-9, 4% years 10-12, etc. This in addition to the existing structure to fund current recipients. And then at some point down the road, begin phasing out the taxing for the old program.
By moving to individual accounts, we get away from this nonsense of treating SSI as welfare, and worse, we get away from Congress stealing the money intended for SSI to use at their will, which is NEVER well intended or smart. Congress has consistently betrayed the American people since 1984, and it hasn't gotten better over time. Today, they sit back and allow millions of illegal aliens pour into the USA, 74% of which will end up on welfare. REAL WELFARE, and never having paid a dime into the system. And for those getting refugee status, they will receive sums of money far greater than the average SSI recipient. And their contribution to our society? A BIG FAT NOTHING!!!!!!!
The American people need to wake up to how truly bent over they are with these politicians.
Back to the UGLY TRUTH about SSI. Politicians cannot continue to structure the program the same way. They need to design a system where monies paid in to the system are in fact in individual accounts, owned by that account holder. And stinking thieving politicians have no where with all to steal those monies. It can be done.
I will work until I die most likely. I turn 70 this year, and I am working full time to scratch out a middle class existence. If Congress reduces the SSI payout 10-12 years down the road by 25%(which is being mentioned in more and more places), I will end up collecting the original amount I was earmarked to receive at my FRA, less the $660 stolen out of my pocket by Obama/Biden. That with my pension, and I will be able to survive.
But moving the FRA to 70 or 72, moving early retirement from 62 to 67 and reducing the payout by 25% will not permanently make the program solvent. At some point down the road, we will be right back where we are now. That is why it is necessary to start individual accounts and establish a roadmap to move fully to that while gradually phasing out the current SSI program, and it gets phased out as recipients die off.
All the comments about the Baby Boom generation are nonsense. Yes, each year there are the equivalent of five years of folks reaching 67 compared to pre Baby Boom folks. But we have TWO BOOM GENERATIONS bigger than the Baby Boomers of 1946-1964. And yes, we have to continue to expand the workforce to support those collecting benefits.
But the time has come to construct a new approach for those moving into the future. And they have to have the ability to invest in the market. Leaving the money with the government is generating 1% returns. This is just plain foolish. Leave the money in the government hands, and the thieves of Washington steal the money and leave I.O.U.s. F*** that bullsh*t!
By having individual accounts, over time, the need to have an expanding workforce goes away. If the workforce shrinks, it will not matter, for if people can invest their retirement in the market and get a 5% - 10% return, they will have plenty of money compared to the current program.
THE TIME HAS COME TO LOBBY THE ELECTED THIEVES TO EMBRACE INDIVIDUAL ACCOUNTS AND DESIGN A PROGRAM TO TRANSITION FROM THE CURRENT PROGRAM TO THE NEW PROGRAM, AND BY DOING SO, MAKE IT SOLVENT PERMANENTLY. AND END THE THIEVERY OF THE ELECTED PUKES!!!!!!