If Social Security is a Ponzi scheme, how do we fix it?
November 23rd, 2011|
Our previous two blogs outline how Social Security may be similar to a Ponzi scheme according to the National Center for Public Policy Research, as noted in the GazetteXtra,
“Pay as you go” programs such as Social Security may be set up with the best of intentions, but they do not work long-term. They do not work when the number of people paying in keeps getting smaller in relation to the number of people taking money out.
The bottom line that most everyone can agree on is that Social Security needs “fixing.”
Amy Ridenour, chairman of the National Center for Policy Research, sees four major ways to fix Social Security “to the benefit of all.”
(1) Guarantee full benefits to people at or near retirement.
(2) Allow younger workers to invest most of their payroll taxes in conservative, regulated investments that grow.
(3) Provide a government floor benefit so that lower income workers can be assured of adequate benefits.
(4) Raise the full Social Security eligibility age to 70 to encourage workers to be saving money to retire.
If Social Security is not a Ponzi scheme, it is close. Too close, Ridenour tells us. She says it is past time for Americans to seriously discuss, and then adopt, fundamental change to our Social Security system.
Do you agree with these changes and what other changes do you think need to be made in Social Security?
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