Reply #29: SS [View All]

[Chef]

The money you pay now is a tax that supports retires today. It is not a savings plan for you that you should expect to withdraw at your retirement. There are many other retirement plans that allow you do invest in anything you want. If you thought you were supposed to get some return on your money like it was one of these other plans, you need to consider that after you retire you will draw out all of your "contributions" to the plan in less than three years. The length of your life after retirement will dictate your "return". If you were allowed to opt out of SS, how would you pay for the retirement of those in the system? General revenue, or perhaps a tax on your earnings in your account? If you allow people to opt out, the you have created a self fulfilling failure.

I can only think of all the seniors I work with who have annual incomes of only SS that amount to $8,000 to $12,000 per year. If you are willing make a social contract to be taxed by general revenue to support these folks, lets hear it.