posted on December 11, 2001 06:43:11 PM
Thanks for the link Antiquary.
I've been waiting for these proposals for a very long time. Having worked in retirement planning for a number of years (not recently) I am personally in favor of any of the proposals modifying the current system. I'd have to see more details to know which of the proposals I would prefer over any of the others, but in general based on this article I'd say any of the changes would be beneficial over all.
Also, I participated in a similar system in the late 1980's in England, it was new at the time and I don't know what has happened since that time to the program. Each worker was given the opportunity to divert a portion of their social security taxes relating to pension benefits into an investment/mutual fund type account administered by an insurance company. Presumably the account would provide more growth through judicious investment by the insurance company fund managers, than the benefit a similar amount of taxes would otherwise provide at retirement from the government pension fund. That was the theory, whether this arrangement is still available or not I'd have to do some research to find out... a new research project, ok.
Someone stop me quick... this is taking me back in time, I could go on about this stuff for hours...
posted on December 11, 2001 11:39:58 PM
Hi enchanted.
My first reactions are that any changes right now would be a hard sell and the article notes that neither the White House nor Congress wishes to tackle SS reforms until after next falls' elections. More likely, the earliest that changes will be made to SS will be after the 2004 elections. It's unlikely that whatever changes are eventually enacted will have much effect on me, except in slightly lower benefits, which I anticipate regardless of the direction of reform.
I'm skeptical that the transition period can be financed through SS surpluses unless the economy is exceptionally robust for another 20 years. And then there's the promise to extend Medicare coverage to include prescription drugs. There're a great number of possible scenarios with all of the compromises that will inevitably take place. Plus the hurdle of getting government to relinquish anytime soon the use of SS surpluses as a tapline for additional general budget revenue. Lots of battles ahead.
In general principle I like the switch to privitazation and choice. More details of the plans should come to light soon.
