Social Security and payout

[beej]

From what I've read addressing the Social Security solvency issue is not that complicated. Take the following steps and we're there:
1) Remove the cap on SS taxable earnings (curently $110,100); and
2) Raise the full retirement age by one year over the current age (67 if born after 1960); or
3) Increase FICA on employee and employer by 1/8 of 1%.

The only thing standing in the way of a legit fix for SS is political posturing.

[Boreas]

Originally Posted by beej

From what I've read addressing the Social Security solvency issue is not that complicated. Take the following steps and we're there:
1) Remove the cap on SS taxable earnings (curently $110,100); and
2) Raise the full retirement age by one year over the current age (67 if born after 1960); or
3) Increase FICA on employee and employer by 1/8 of 1%.

The only thing standing in the way of a legit fix for SS is political posturing.

There's also the intense desire on Wall Street's part to get their mitts on all that money. Of course, that's what a lot of the posturing is about.

John

[whell]

Originally Posted by Boreas

There's also the intense desire on Wall Street's part to get their mitts on all that money. Of course, that's what a lot of the posturing is about.

John

Too late. Congress beat them to it. Can you say "special issue securities"?

[Oerets]

Originally Posted by beej

From what I've read addressing the Social Security solvency issue is not that complicated. Take the following steps and we're there:
1) Remove the cap on SS taxable earnings (curently $110,100); and
2) Raise the full retirement age by one year over the current age (67 if born after 1960); or
3) Increase FICA on employee and employer by 1/8 of 1%.

The only thing standing in the way of a legit fix for SS is political posturing.

I agree with points one and three, but raising the age of eligibility seems to also raised the applicants and awards for disability. When this happens they will receive the top payout. Seems that a few people can't do the manual labor jobs in their sixties or have underlining health problems to deal with.

Also SS should be means tested for benefits. Those with ample finances should receive a percentage based on actual needs. Pay in when earning because something might happen over the years. One who was once flush is now in the poor house due to health, divorce or any number of reasons.

Barney