Pete said:
I still disagree. People cannot be trusted to save for themselves. They will opt out to keep the $300 in their checks and blow it on DVD's, DVR's, Cell phones with 10,000 ring tones, blingbling and cars; Then wake up one morning shocked to be 65 years old with a bad back and failing eyesight, no savings, no investments and no SS. WTF do we do then, say TFB for you, you should have thought about that then? Do you honestly believe that our society will stand by and see hoards of elderly homeless, on the street and starving? No it won't, it will then have to come up with some expensive system to care for these people. They will skip out on paying SS, and STILL get benefits.
I think that the answer to your concerns was in President Bush's reform plan, which the Dems and the press did everything possible to squelch. The core point that Bush was trying to make is that in 20 years or so a lot of bad things are going to happen. We who retire at that age will either have to work longer, or get benefits cuts, and most likely both. Also my kids are going to have to see major increase in their SS contributions. This is not a "what if..." scenario. It's going to happen, and when that time comes the politicians in charge aren't going to be able to push the problem back anymore. So, what can we do now to help offset the primary problem, which is going to be cuts to our benefit payments?
What Bush proposed is taking a piece, not all, but a piece of our withholdings and letting us put it into an investment program that yields a lot more than the pittance SS currently gets. Even if this external investment program completely failed you wouldn't be that much worse off. But, when the cuts come, and they are coming, you would have additional resources to help offset the loss. His plan was never to replace or end SS, only to make it a little easier for folks like me to deal with the cuts when they come.
The Democrats have proved 100% resistent to doing anything that upsets the status quo out of fear of angering seniors already drawing SS, even though these people would not be effected by anything Bush was calling for. The Dems keep acting like some friggin miracle is going to occur in 20 years and prevent all of this, but I'm sure future politicians are going to be as guttless as the ones of today and until the "bank closed" sign goes up at SS, and we're in crisis mode, they'll keep postponing taking even minimal preventive action like Bush wants to do.
