Baby Boomers Bankrupting Social Security For Future Generation

In 2008, the figures have been tweaked slightly. Employers should be aware that the ,500 number has changed. It is now 2,000. This means, of course, that as an employer, you must withhold the 6.2 percent for an additional ,500 of those employees who earn this type of money.

The Social Security Administration can provide benefits in three different categories, they include; when you retire, if you become disabled, and lastly when you die. Information about Social Security benefits can be found on the Social Security Administration’s website. The age to receive full retirement benefits has been 65 for many years now however for people born after 1938 it is gradually increasing until it reaches the age of 67 for people born after 1959. An individual may start receiving retirement benefits as early as age 62, however if an individual decides to receive benefits starting at age 62 then their benefits are reduced a fraction of a percent for each month before your full retirement age. To find out how much an individual would lose if they retire at age 62 you can visit the social security web site. An individual has the choice to retire between the age of 62 and the full retirement age. An Individual qualifies for Social Security benefits by earning Social Security credits when they work in a job and pay Social Security taxes.

The most powerful message trumpeted by the President Clinton’s spin machine of political anthropology is the one that during his term the federal government produced a surplus. The definition of surplus when used in the vocabulary of working families implies that the family enjoyed more income than its obligations. Purchasing goods and services with credit does not qualify as part of surplus income. The credit funds must be paid with interest at a future date. Those obligations must be met.

The debate about Social Security’s depleting fund has been going on for years. Recently, analysts have begun discussing possible solutions to ensure the availability of Social Security for future generations. The Administration’s 2005 trustees report predicted massive annual deficits starting by 2017. This means that by 2017, this Administration will be putting out more money than it’s collecting through taxes. What’s even more troubling is that there’s no definite plan of action to permanently fix this huge problem.

But the rising inflation is also a cause of concern. Forty percent is not enough to meet the rising costs of living. Things are getting costly day by day and with recent developments taking place in the economy this is a matter of great concern. As the costs of food items soar and living becomes costly the forty percent which the government provides does not provide for adequate support.

When the whole idea of Social Security was first brought to the table, way back in post-Depression FDR days, there were 16 Social Security contributors for every 1 Social Security beneficiary. Today, that ratio is closer to 4:1. By 2030, when America will be bearing the full brunt of retired baby boomers, that ratio will be 2:1. To accommodate that ratio, either recipients will have to get less, or workers will have to pay more. The current method of funding the program is simply no longer applicable.

In addition, for those that truly believe sovereign risk is the greatest risk we all face, it is wise to learn how to implement a multiple flag strategy to diversify this risk or provide protection against higher taxes, capital controls, hyper-inflation, civil unrest, erosion of personal liberty, and the rise of a police state. With a multiple flag system, you consider taking preparations like, but not limited to, establishing a foreign bank account, purchasing some real estate overseas, seeking alternate sources of income, dual citizenship, and carrying multiple passports.

After doing researching and analyzing the proposals offered by many politicians, I feel that privatizing Social Security is not such a bad idea. I feel that privatizing Social Security would give people more control of their money when it comes to saving money for retirement that the government cannot touch. I understand that some people might fear the risks of investing in the stock market, but if someone diversifies and chooses funds that are somewhat conservative, there is a very small risk of having little return. Considering that Social Security today has very little return “Social Security’s inflation-adjusted rate of return is only 1.23 percent for an average household of two 30-year-old earners with children in which each parent made just under ,000 in 1996.” (Beach), you would be better off putting your money into a savings account earning a return close to 3 percent.

There is a way to do it…a plan that requires just three changes that won’t cost any participant one single dime to implement and they have known about it for nearly six years! This plan was sent to every member of Congress six years ago…have you heard anyone in Washington talking about it? No.

In Years Two through whenever, the Federal Government would add to retiring persons SSRIAs to bring the annuity benefit to the level guaranteed by the OASI plus COLAs. Once an equalization level is achieved, federal responsibility would cease for that retiree.

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