I've been a card carrying member of this system 45 years. During much of that time I would have been happy to opt out of the program if the government would just let me keep the future taxes paid into the system by me and my employer. Now that I'm in my 60th year that's no longer a wise option. Whether you believe there is a future Social Security crisis or not, just looking at a typical individual's annual benefits statement should be enough to alert you that something's got to change!
My last statement says that if I retire at 66 and collect benefits, the estimated monthly payout should be about $1600, slightly over $19,000 a year. My statement indicates I and my employers have put in slightly over $100,000 so far. I've already collected about $6,000 in survivor benefits after my father died. It certainly helped get me through college. I probably have a life expectancy of living into my 80's so $20,000 a year for say 15 years means I would collect about 3 times the amount of money I put into the system. And yes I know I'm not taking into consideration the time value of money (interest), but let's face it most of the money I put into the systemwas paid to earlier generations a long time ago. Besides once it left my paycheck it was no longer my money. Since I'm on the front end of the "boomer" generation, there are enough folks behind me contributing so that my benefits are secure. But some day the system will have to change.
Social Security has provided a financial cushion for a lot of people over it's 70+ years and it will continue to do so through my lifetime. But now the Republicans, Democrats, and lobby groups like AARP are debating potential changes. Each group seems polarized and willing to fight to the death over this. Every one of them comes to the debate armed with a multitude of facts and figures supporting their position. It's just like the last presidential campaign--lots of bickering and so far no meeting of the minds to compromise on a long term solution. Reminds me of the abortion debate--everyone deeply involved in that issue has already made up their mind and nothing, nothing anyone else can say will cause one single person to change their mind.
Do I have a solution? I think folks who face the potential insecurity of the future system should decide on the future of Social Security. Those of us who are already reasonably certain of the benefits should stay out of the debate. Having said that, if I were just starting my working life over I would vote to opt out of the ststem altogether or create my own private account. That's somewhat selfish because Social Security is a system that is suppose to provide for the general welfare of society--and it has indeed done that over it's 70 year existence. But I believe it's time for the government to turn retirement planning--or at least some portion of it--back to the individual.
So young folks, get involved, help formulate the future because the future Social Security debate is now your baby--not mine!
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