Government

Social Security is more important than ever … why?😕

The following is true, but …

Social Security provides two-thirds of retirees with half or more of their income. It provides virtually all of the income of one-third of senior beneficiaries. Cutting these modest benefits would throw millions into poverty and increase the depths of poverty of millions more.

The American people are divided on many issues, but not Social Security. They recognize that Social Security is a solution and should be expanded, not cut. Poll after poll shows that Democrats, Republicans, and Independents overwhelmingly agree that Social Security should not be cut and that the program’s modest, but vital, benefits are more important than ever. Source: Huff Post

Social Security has been around for eighty years. During that period there has been tremendous economic growth and some missteps. There are more and more programs to help the lower income and middle class and several vehicles to help prepare for retirement. And yet … “the program’s modest, but vital, benefits are more important than ever.”

More important than ever? Why? 

Why over all these years of opportunity haven’t the American people learned to plan for their retirement? No, it’s not because they can’t afford to. It’s because it’s a low priority and to do so would cut into the present day standard of living. 

There is no reason to believe this will ever change. It’s time to be honest. Raise the payroll tax to both make Social Security sustainable and raise benefits. Of course, more will never be enough and making the Social Security benefit too large will only encourage less personal responsibility, but that’s the age in which we live. 

For the average retiree Social Security is designed to replace about 40% of income. How much higher are we willing to pay for?


Advertisements

9 replies »

  1. Something doesn’t add up in this article. For 100% of the retirees, they get than 50% of their income from Social Security. Now add in the cash value of their Medicare benefits. Who needs pensions & 401Ks. If Social Security was only intended to replace only 40%, then the program has exceeded that goal. What are people complaining about then?

    Like

  2. That’s the problem! Those who want higher benefits want others to pay for them. As current funding confirms, people are not willing to pay for the current levels of benefits.

    Like

  3. However: 1.) a college education is much more expensive than sixty years ago, 2.) housing, especially in some of the largest metro areas, is much more expensive than sixty years ago, 3.) health care is much more expensive than sixty years ago.

    Like

    • You are correct Vince..

      1.) a college education is much more expensive than sixty years ago. Easy credit.Student loans. Everybody needs a college degree.Higher demand =higher prices

      2.) housing, especially in some of the largest metro areas, is much more expensive than sixty years ago. Easy credit. If you can fog a mirror, you can get a mortgage. Government policies. The American dream. Tax policy subsidizing home-ownership through mortgage interest deduction.Higher demand = higher prices

      3.) health care is much more expensive than sixty years ago..Can’t blame this one on easy credit. Higher prices come from some combination of health insurance, technological advances in healthcare and healthcare litigation. Doctors order every test known to mankind. CYA

      Like

  4. “Why over all these years of opportunity haven’t the American people learned to plan for their retirement?”

    I think that over the past 50 or 60 years the American people have unlearned something they already knew. The mind set of saving for a future need was destroyed by the proliferation of easy credit. If I want something now, I can have it now and I’ll worry about paying for it later.

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s