Social Security Alternative
August 26th 2010 04:36
This is a follow up to my article from yesterday.
So if social security is a bad thing, what do we do to fix it?
Basically we need to end the program. The problem is that so many people have planned on getting social security benefits that we can not just end it. That would be morally, and probably legally, wrong.
So here is an outline of my plan:
Anyone who wishes to never draw social security will be able to stop paying social security completely at this time. This is good for the government because the people have paid into the system in the past and will never draw any benefits. If, for whatever reason, you wish to stay in social security you may do so, but it will be limited.
I would break the step down into 6 steps, with those closer to retirement receiving a larger percentage of benefits than they pay in as follows:
Group 1: SS Tax – 10% Benefit Rate - 90%
Group 2: SS Tax – 8% Benefit Rate – 70%
Group 3: SS Tax – 6% Benefit Rate – 45%
Group 4: SS Tax – 4% Benefit Rate – 20%
Group 5: SS Tax – 2% Benefit Rate – 10%
The groups would be set up by current age somewhat like the following:
Group 1: 60
Group 2: 50-60
Group 3: 40-50
Group 4: 30-40
Group 5: 20-30
Anyone who is under 20 will stop paying social security taxes, will receive no return on what they have paid, and will receive no future benefits.
Any portion of the 12.4% Social Security tax that is not paid into social security will be mandated to go into a retirement mutual fund of some sort. We can put laws into place stating that people can not take money out of it until a certain age.
If you run these numbers for anyone they should work out. Let me know if you think you would be better off under social security. I am 31 and I would immediately give up any future benefits to be able to keep my 12.4%
If you have nay better suggestions let me know.
So if social security is a bad thing, what do we do to fix it?
Basically we need to end the program. The problem is that so many people have planned on getting social security benefits that we can not just end it. That would be morally, and probably legally, wrong.
So here is an outline of my plan:
Anyone who wishes to never draw social security will be able to stop paying social security completely at this time. This is good for the government because the people have paid into the system in the past and will never draw any benefits. If, for whatever reason, you wish to stay in social security you may do so, but it will be limited.
I would break the step down into 6 steps, with those closer to retirement receiving a larger percentage of benefits than they pay in as follows:
Group 1: SS Tax – 10% Benefit Rate - 90%
Group 2: SS Tax – 8% Benefit Rate – 70%
Group 3: SS Tax – 6% Benefit Rate – 45%
Group 4: SS Tax – 4% Benefit Rate – 20%
Group 5: SS Tax – 2% Benefit Rate – 10%
The groups would be set up by current age somewhat like the following:
Group 1: 60
Group 2: 50-60
Group 3: 40-50
Group 4: 30-40
Group 5: 20-30
Anyone who is under 20 will stop paying social security taxes, will receive no return on what they have paid, and will receive no future benefits.
Any portion of the 12.4% Social Security tax that is not paid into social security will be mandated to go into a retirement mutual fund of some sort. We can put laws into place stating that people can not take money out of it until a certain age.
If you run these numbers for anyone they should work out. Let me know if you think you would be better off under social security. I am 31 and I would immediately give up any future benefits to be able to keep my 12.4%
If you have nay better suggestions let me know.
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