[Capitalism2003]

Why don't we knock out the 7.5% FICA tax along with the employer's 7.5% matching "contribution" which comes directly out of people's paychecks? Every worker in America would get an instant 15% raise if we did this. How would that help with your retirement savings?

I recall reading an interesting book a while back..It had some statistics in it about what the average person COULD have had they not been forced to 'contribute' to social insecurity throughout their workinglife. Assuming you make an average salary of $20,000 from age 16-65...adjusting for inflation, had you invested your social insecurity taxes in a conservative mutual fund averaging 10% a year, at retirement you would have a private account worth roughly 1.2 MILLION DOLLARS. Drawing 5% interest on this account would equal a $60,000 annual pension, and you will NEVER touch the principle!!! Every penny in the account could be passed to your children or to charity. Of course, if we were to do this, every worker in America would be better off. They would OWN their retirement, rather than relying on government handouts. People would be completely independent, and a major piece of the welfare state would no longer be needed...an absolute NIGHTMARE for the socialist left.

[Modernman]

I recall reading an interesting book a while back..It had some statistics in it about what the average person COULD have had they not been forced to 'contribute' to social insecurity throughout their workinglife.

Social security is a terrible investment. If we want to ensure that everyone has money saved up for retirement, we would be much better off scrapping SS and expanding the 401(k) program. The money I put in my 401(k) grew nearly 20% last year. I would have loved to have been able to take all of the money that was sucked out of my paycheck and put into SS and put it into my 401(k) instead.