You said: “Second, those who are currently retired and relying on SS. Simple fact is, someone promised them someone elses money and they depended on that promise.”
How is it someone else’s money? Last time I checked, I have been paying social security tax since I started work. If I live to the age where I am able to collect social security, are you saying that the money I paid in doesn’t count for anything?
People who collect social security now, have paid in since the program was started. If that money would have been left in their checks, then yeah, they are on someone else’s dime. But they have paid.
First, the money you put in, likely has already been used to pay for something else or even on the brightest side, paid for someone elses SS benefits. That means, to get "your" money back - someone elses cash will need to be given to you. Just like a ponzi scheme.
Second, half of the money put into SS comes from your employer. That means they had to increase their prices to cover part of the ponzi scheme which in turn is taking money from other people. Again that money has likely has already been used to pay for something else or even on the brightest side, paid for someone elses SS benefits.
Third, the rate of investment return on whole within the SS program is less than inflation. That means, to even make a minor attempt to keep benefits in check with regard to inflation, it will be necessary to take more money from other people to pay out the benefits.
Absent draconian cuts in benefits, massive increases in required contributions, or jacking the retirement age up to a much higher level, the system is insolvent. That means for you to get your money back from the system you will have to be paid by someone elses money.
I'm not trying to say it's your fault, it's just the way it is.
Last time I checked, I have been paying social security tax since I started work.
You are certainly not alone. So has every legal employee and their employer.
If I live to the age where I am able to collect social security, are you saying that the money I paid in doesn’t count for anything?
It counts for something. You and I and our employers paid for the benefits of people who retired before us. Problem is, the ponzi scheme is unraveling and when the music stop there certainly aren't going to be enough chairs for everyone to sit in to get their benefits.
I would prefer to ease out of the system over the next 20 - 30 years. If for no other reason than to avoid hanging a multi-trillion dollar debt around my children's neck.
People who collect social security now, have paid in since the program was started. If that money would have been left in their checks, then yeah, they are on someone else’s dime. But they have paid.
They paid, no disagreement there. There just isn't enough cash to keep up the current scheme. Absent draconian cuts in benefits, massive increases in required contributions, or jacking the retirement age up to a much higher level, the system is or soon will be insolvent.
Also, and this isn't meant to be argumentative, but those who are collecting now - they didn't hold their elected representatives accountable for mismanaging their money. The system was likely doomed to failure from the start, but ignoring that, most investors would not stand for letting their investment fund managers liquidate their assets and put a big IOU in their account. But, they let Congress do it over and over again.
Someone has to pay off the IOUs. Just the way it is.
We could debate the reasons for that, but it is a fact. Blame Congress for raiding that money, probably true. Blame Congress for not adjusting the retirement age up fast enough (SS originally began at the typical life expectance age). Blame society for thinking they deserved to be able to collect 20 years of benefits, adjusted for inflation. Blame special interest groups which villified any attempts to deal with social security management earlier when it would have been much easier.
Blame whoever you want, doesn't change the facts. The system is or soon will be insolvent. Waiting to deal with it won't make it any easier.
The current pains of GM are at least a decent metaphore of where the US is heading if we don't do things to address this problem very soon.
Just like in that situation, some will get screwed over, you me, lots of others. Just a fact.
Personally, I would prefer to deal with it now in order to attempt to make the screwing over as orderly and effective as possible.
Take care.