What we say and what we do are frequently two very different things. Following is a good example. My question is does this imply that at least this demographic is unable to act in its own best interest and that it needs to be forced into prudent action?
This is a very real problem, not only for these individuals, but for society as a whole. What to do, what to do?
Does the solution include bumping up the Social Security payroll tax along with the ultimate benefit? Forced savings for an undisciplined society? To do that first we have to increase the current level by about 2.66% just to keep the program solvent and then we need to figure out how much more to increase it to fund higher benefits long-term.
So, we are talking about a total payroll tax of about 20% shared equally between employer and worker … the amount of wages to be taxed yet to be determined🤑 Is that enough?
Except from Bloomberg Personal Finance:
If you had to choose between the two, and you’re between 18 and 34, odds are you’d trade some of your pay today for greater retirement security in the future, a new survey says.
It seems odd. Aren’t young people loaded down with student loans and plagued by expensive housing? Some 65 percent of millennials surveyed by EY (aka Ernst & Young) and the Economic Innovation Group said “they did not make enough money to cover expenses or are living paycheck to paycheck.” And aren’t they focused on experiences—and not the experience of living in drudgery while they save all their pennies for old age?
Yes and yes. Still, 60 percent of those 18 to 34 in a Willis Towers Watson survey of more than 5,000 workers said they would forgo some of their pay if it meant a more secure retirement. That’s up from 42 percent when the same survey was taken in 2009.