Social Security to cut benefits

[3tbear]

I wonder if there will even be Social Security by the time we are ready to retire from work. It's hard enough to save a nest egg, but to lose benefits, money we have been paying out each week from our checks into Social Security and then not being able to reap the rewards from it is just something I don't want to think about. Any opinions on this? I guess when the time comes, we could always help each other out here on DOD with the freebies, and suggestions of how to live inexpensively. At least we have our fellow DOD members to help us.

[crazytimes]

Well it's about time someone realized that Social Security, as it is, WILL NOT last.

It's just a shame none of the politicans have the balls to actually DO anything about it. And it DISGUSTS the way they simply shrug off Greenspan's remarks. He's not pulling this stuff out of his you know where, it's all based on public facts and figures.

I love how politicians love to talk about how SS needs to be reformed, yet never offer any solutions. IMO, they are all something I cannot post on DOD because they are simply afraid to face the issue.

Personally I think we should be allowed to keep this absurd amount of money they take out of checks and invest it ourselves.

I mean considerng how deep the government is in debt, why would any sane person trust them with their hard earned money?

Eventually something will have to be done because the amount of money being paid out will be more than is being taken in.

[telos2000]

Well, if all the senators and representatives weren't lining their retirement funds with it, there might be some there for us.

[theloo]

Originally Posted by telos2000

Well, if all the senators and representatives weren't lining their retirement funds with it, there might be some there for us.

Ah, there's the rub. I may be mistaken, but I believe that certain federal officials DO NOT pay into (and don't get anything out of) social security. They have their own pension-type program. Personally, I'm 100% positive that I manage my money better than the US government, so I'd like the chance to do it myself. Problem is, I think most people cannot do it themselves.

[3tbear]

I agree, it'd be nice to have the Social Security to rely on, but the reality is, we probably won't. What will the people do that refused to save their money all along? Everyone should have some kind of a savings plan.

[ShainaT]

Theloo- you are 100% correct. My relative works at the Fed Reserve Board. He's never put a penny into SS since he's been there starting over 30 years ago. His 6% (or something close to that) has gone into a private fund that he'll collect when he retires. I know employees who work for the FDIC have the same option. I should say that I don't know what happens with people who are hired today. For old timers this was indeed the case.

3tbear- the people that don't save for themselves (or can't for some reason) are going to be screwed IMO. Life is expensive.

[aprilgail]

Originally Posted by telos2000

Well, if all the senators and representatives weren't lining their retirement funds with it, there might be some there for us.

A lot of them are in the same plan I am in....I have NEVER paid into social security nor do I ever plan to. I pay into railroad retirement and it is basically the same plan as the senators have. We collect more than social security pays and it is secure, unlike social security!

[crazytimes]

You can opt of our social security?

I wonder if there is a law that says you must pay into Social Security.

If not I want to opt out NOW.

I think it comes down to personal responsibility. If you choose to spend your money foolishly, that is your business. Don't come crying to the government when that happens though.

[ShainaT]

Hahaha Crazytimes! I wish you could opt out.

When I was working years ago and told my coworkers about this we decided to call up the SS office in D.C. to find out how to opt out of paying SS. The average working citizen does not have that option at all. You MUST pay into SS...no ifs, ands or buts. I know it sucks and is unfair especially since the people that govern it don't even pay into it. Such is life I guess.

[blueaguave]

the bi-partisan Ponzi scheme is collapsing. But, you gotta give it credit. Most Ponzi schemes last only a few months. This one lasted decades!

[pandybat]

It's very hard to pay into a retirement fund and have to pay SS at the same time. I wish if we couldn't opt out that we at least had an option of what to do with that money in the meantime, like invest it or something.

[crazytimes]

I completely agree. SS should have never been a required system. Had they simply made it optional from the beginning and people paid into their own personal accounts, then we wouldn't even be having these issues.

[ShainaT]

The question would then be what would happen to people who retire who DIDN'T save any money?

If it was optional then a lot of people would not have put a penny in it. They would retire with nothing. Since some people subsist only on their SS payments, what would happen to them?

For an example, my dad is one of four kids. His parents worked hard at low paying jobs to support the family in NYC. They had almost no money left over each month. Both my grandparents in NYC would have been totally screwed if they didn't get their monthly SS payment. Now, on the other side of the coin, my mom's dad doesn't really need his SS payment but he gets it like clockwork every month.

[crazytimes]

I don't know what to say. I guess in the end it would all depend on what decisions you have made. Social Security, if it becomes option, just means we would each have extra money each month if we opted out of it. It would be our decision what to do with that "extra" money.

If people were making ends meet while social security was being deducted, then technically they should be able to invest/save the money that was dedcuted and their quality of living should not be affected.

I personally just do not have much faith in my government. I am not comfortable investing a large amount of money with them.

[monkee]

Originally Posted by crazytimes

I personally just do not have much faith in my government. I am not comfortable investing a large amount of money with them.

I agree with that. You know, we'd probably all be much better off even if the government let us have the money we're paying in, even if they required that a portion of it (or even all of it) had to be in something like an interest bearing savings account. You'd make out better sticking it in some crappy passbook savings at your local bank and getting 2 percent interest than you would with the government "managing" it. It's not like everyone would be running out a buying tons of stocks with it and risking it all.

The other thing that makes me mad about this whole thing (and I know I've said this before) is that if I die two days before I'm eligible to collect my benefits, I don't get jack. At least if I had control over it, I could take all that money I've been paying in and leave it to my family. But then, the government wouldn't get its greedy paws on it, so I'm sure privatization will never, ever happen.