It's not that complicated when one learns how to address the problem from a social marketplace perspective that isn't constrained by offering one size fits all socialist/collectivist solutions such as Social Security. Yes, it's possible to evolve from Social Security, where one really doesn't have a pension with your name on it, to one that does, while also providing a safety net for existing Social Security recipients who rely upon Social Security for their basic needs..
- Start by designing a private pension/IRA system where the existing SS framework would put $1 per hour into each worker's pension/IRA.
- This would be about $2000/year going to the typical worker's IRA if they work the rough average of 2000 hrs per year.
- Workers of all sorts would still pay the regular FICA tax with employer matching into SS and most of this would go to help pay the current SS retirees.
- Workers could choose to direct more to go into their IRA, their spouses IRA, or whoever they want to help out, if they wished to.
- This means, the older workers with higher incomes paying more into FICA would be helping get lower wage younger workers get their IRAs kick started...
- There would be a default IRA one could choose from, probably something like the investment portfolio of Federal Employee Unions. Optionally, one could move other IRA approved investments of your own choosing.
- A typical well chosen IRA might double in value every 7 years -- that's how the Fed's pension portfolio works... So if you start working at 20, 42 years later, your $2000 IRA started at age 20 from working 2000 hours flipping burgers would have doubled 6 times to be worth $128,000. Your $2000 IRA for the next year at age 21 would be worth slightly less, etc, etc, for each subsequent year...It would amount to significantly more than a one million dollar pension.
In other words, folks would have a real pension, in their name, that they could pass on to their heirs, that they could use to pay medical coverage and bills, housing, and judiciously enjoy their retirement based upon a life time of working, without sucking taxes from future generations for their measly SS benefits... Yes, sad truth is SS is a horrible retirement benefit that is barely earns more money that one put into it years ago...
Additionally, with a capitalist marketplaced base retirement system,
- all the money invested in IRAs would have created lots of new jobs and new wealth.
- This in turn would help pay for transitioning out of the Ponzi SS system...
- This is unlike the current SS system which is heading towards needing huge taxes on future generations of workers (making future economies and generations poorer with little to show for their work)..
Folks, this stuff isn't rocket science, but apparently private pensions are too complicated and controversial for our bozo socialist collectivist politicians to agree on because it empowers the individual and the marketplace to be in control, and not politicians and burrOcrats... .
