For the last 2 posts, I have explained that social security is in real trouble and should be euthanized. Now I will explain how to do it in the most fair and compassionate way possible.
Our current generation of retirees (and soon-to-be retirees) needs to be protected in this whole process. Therefore my plan doesn’t require them to make any sacrifices. They had a contract with the US government and we need to keep that contract. So the first step of the process is that anyone 58 and over receives all of the benefits that they are currently supposed to receive.
The second step of the process is that since everyone that is 57 today has ten years to prepare for the change, they will receive 10% less than what they were supposed to receive as of today. They need to start saving to prepare for that day and stop looking to the government for a complete handout that is not going to happen. Besides, 10% is not that big of a sacrifice.
The third step is to reduce the gift each year by 2% times each additional year under 57. So, as I said above, 57 year old people are eligible in 2017 and they receive 10% less. Then everyone that will be 67 in 2018 will receive 12% less than today’s standard. 2019 retirees will receive 14%, 2020 retirees will receive 16% less, and so on.
This means that by 2062, Social Security will be gone. Good riddance. RIP! FDR should be proud, he created a system that took almost a century and a half to kill. Think about that – how many institutions today were started at the time of the US Civil War?
The fourth step is probably the most important. For every dollar that American’s pay into the Social Security system until it it has enough money to survive until 2062 (by my estimate that will be until about 2025, maybe 2030), we will be able to set aside another dollar into a specially declared savings account that can’t be touched until we are 67 and the principle and the interest will never be taxed. That savings program will continue and hopefully become the new 3rd rail that politicians can’t touch.
MY PLAN WILL HAVE SOCIAL SECURITY COMPLETELY FIXED BY 2062! NO OTHER PLAN CAN SAY THAT!
BTW, I will be 100 years old when SS is dead! I hope that I can live that long and I will do a jig if I am still able. If I do live that long, you can be confident that I will adequately prepare my finances so that I am not a burden on my children or society.
I am done with this topic for now but I reserve the right to rant more on it someday.
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