Really? In the next 20 years less money will be taken out for current employees than needed to meet current obligations. The “trust fund” is a lie.
Either taxes will have to be raised on workers or benefits cut. Social security taxes have been used as part of the current general budget since the 70a
Well, I said it was a myth that it was trust fund. The fact is that if you look at current demographics, the number of working age people to retirees that there is no mathematical way that current tax rates can support the commitments.
And why would you want more of your taxes going toward current government spending that you have no control over like social security does?
I'm not a fan of the PR that surrounded the introduction of SS in the USA, but the technical aspects of how it was intended to work have not changed, and have worked as intended thus far. Fixing the demographic issues is relatively easy: just remove or increase the cutoff for SS taxes.
I don't understand why "you control your investment" is such a selling point. If I put $X in and get $Y out, I don't care whether I "control" it or not. Does the ability to choose between dumping your money into Fund A that pays 7% with 0.1% fee or Fund B that pays 7.1% with a 0.2% fee really make you feel like you're empowered?
All other things being equal, I'd rather not have to control it. One less web site to have to log into to micromanage something that should just be done for me. Let a index fund manager or the government get me my 7%. I really don't care at all.
I guess some people just hate on principle the idea of government doing anything for them, so for them, owning the account gives them a warm fuzzy feeling. I don't get it.
Where is the money going to come from for you to get $y? In 20 years, the government is already going to have to raise taxes to meet then current obligations. How much more do you think they are going to have to raise taxes to meet increase obligations.