Thou Shalt Not Bash Social Security
In a recent article for the U.S. News & World Report, Philip Moeller writes that many working people see the Social Security as undependable. He says most people think that the Social Security program will disappear or will dramatically cut payments in the future.
According to a newly released Sun Life Financial research report, it appears that about half of working people would opt out of paying Social Security taxes even if this means they will receive no Social Security benefits. Not only workers in their 30s and 40s said they would prefer to stop paying into Social Security, but even workers that are only a couple of years away from obtaining Social Security benefits.
Philip Moeller states that though overall pessimism in times of financial crisis is understandable, Americans’ attitude towards the Social Security system is surprising. As Social Security was always reliable and as the benefits it offers are indexed according to the inflation, this is a convenient lifetime rent. If you would consider buying a corresponding product from a private insurer, you would have to pay a very large amount of money up-front.
Moeller argues that, though Social Security faces serious financial difficulties, there are no reasons to attack it. Social Security needs only some minor adjustments to be a balanced and secure program. These minor adjustments involve to the retirement age, which should be increased a few years, the raising of taxes forced on Social Security participants, and some readjustments on Social Security’s inflation policy.
Moeller considers these changes to be a sure way to give satisfactory benefits to contributors. Restoring America’s confidence in Social Security by offering a stable program for the next 75 years is a priority. Both retirees and the general public should be educated about financial responsibility and the importance of Social Security for the success of a retirement scheme.
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