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5.3.05

A good site on social security here.

And social security suggestions from Center For American Progress.

The cost of diverting social security funds to private accounts is estimated to be $2 trillion dollars. This money would be added to our national debt.

If no changes are made to the social security system, it will continue to be able to pay out full benefits until either 2042 or 2052 (depending on the rate of economic growth in the country).

After 2042, social security will be able to pay at least 70% of benefits, even if nothing is done to improve the fiscal condition of the program.

Diverting social security funds to private accounts does not improve the fiscal condition of the social security program. The White House admitted this today.

In the President’s plan, workers will not really “own” their so-called personal accounts. The government will tightly control where funds can be invested and there is no guarantee that the accounts will increase over time or will last throughout retirement.

The social security system may begin to pay out more than it takes in as early as 2018. However, the system has built up a trust fund that can maintain current levels of benefits until at least 2042.

Social security is the most successful social program in history. Poverty among the elderly used to be one of this country’s greatest problems. Today less than 10% of seniors live in poverty. One-third of seniors depends on social security for at least 90% of their income.

Some more info from American Progress: "[e]ven if only two percentage points of payroll tax were diverted into privatized accounts, this would mean $60 billion a year could flow into mutual funds and other securities" on Wall Street."

1 Comments:

  • At 7:43 PM, Blogger CC Baxter said…

    So the system will work (fully) until 2042. Does this account for cost of living adjustments too?

     

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