Unlike the debate on the cause of global warming, I think most folks believe the reports that Social Security will be in Hurtsville in the next few decades. Too much outflow and not enough inflow.
So the question on the Hill is how do we keep the program afloat and prevent the villagers from attacking the Capitol with pitch forks and torches? I don’t know about you but paying more for the program in taxes is not appealing to me. That said, the program has to get leaner and more focused. Well you know what they say about people and opinions, so here goes…
Have you heard young people talk about Social Security? They doubt the program will be around for them. As a result, they are planning as though the burden of their retirement is all on them since they can’t count on the government. Whoa, people whose entitlement mentality hasn’t taken hold, yet. This cultural shift among young people is our ticket out of the pickle we’re in. We should start an evolutionary (long, slow, weaning process of incremental reforms) plan now to reform the program for people coming into Social Security 25 to 40 years down the road. How about…
§ Automatic gradual increases in the Full Retirement Age related to the mortality age over time. Like a COLA increases your Social Security and military retirement pay, a mortality adjustment each year would increase the Social Security full retirement age. If not automatic, at the very least, Congressionally mandated increases to the full retirement age based on mortality tables every 5 or 10 years. As we live longer and longer, the goal of retiring at age 62 – 67 becomes a greater luxury of early retirement and that luxury shouldn’t be a requirement placed on the government (us taxpayers).
§ No Social Security retirement benefit for people over a certain income level. Practically speaking, after a point, the greater your income in retirement, the less Social Security means to your retirement lifestyle. At some point, why can’t we just say you don’t meet the requirements for the benefit? Your contributions will support all the folks who worked the jobs that didn’t offer them the opportunity (in pay and benefits) to retire as comfortably. How do we decide who gets and who doesn’t? Tough question. Maybe indexed to your county’s medium income levels. Say, if your income is more than twice (three times?) the county’s medium income, you are ineligible for Social Security retirement benefits.
§ No more early retirement option and no more stepped-up retirement benefits after the full retirement age. Everyone has to wait until full retirement age to apply. Everyone gets a set amount at full retirement age. You can apply at or after full retirement age but the amount is the same. The COLA still applies.
§ Start aggressive financial education in schools to plant the seed that Social Security retirement benefits are no longer an entitlement for all. Teach kids the importance of taking care of themselves in their futures and how to do it.
Obviously there are loads of pros and cons to these ideas. Some of these ideas go against principles I believe in. However, tough action is necessary and some of us will have to buck up if others are to have the safety net. Otherwise, just turn your income over to the government and get in line to have the government give it back at the rate it thinks you have earned. I just felt a shiver down my back even thinking that thought. Here are some ideas to start Social Security reforms. What are your ideas?
