Raising social involvement, self awareness and self improvement topics, because our communities are the sum of our personal beliefs, behaviors, action or inaction. Only "we" can improve our family, work place, school, city, country, etc.
Well, it's a little different than we think. The SS trust fund depletion date has just been moved up a few years. And this is only a problem because we lack the political will to provide a solution.
The real crisis is the fact that the move to defined contribution plans over the last 30 years has diminished the amount of retirement savings most retirees will have available to them when the time comes.
"People choose not to save and invest, and again you blame it on others. Where does personal responsibility fit into your world view?"
The move from defined benefit to defined contribution plans was not an organic one -- it happened at the behest of larger corporations who wanted to offload pension obligations.
"Do you really want big bother to be responsible for everyone's life and to make all of our choices for us?"
I fail to see what private pension plans have to do with "Big Brother".
Besides, guess who's going to be paying the bill for the destitute seniors damaged by these changes?
"Big Brother" to me can be Gov't or Business. Anyone who reaches into my pocket and puts my family's financial future at risk. Please remember that pensions have the same problems as SS.
Why aren't you criticizing corporations for not following through on their end of the deal to fund pensions for the workers who have provided their labor and productivity over decades? Or do you only shame poor people?
As far as I know, on going businesses need to fund their pension funds adequately, where as SS was allowed to not do that.
Now as for Union companies and the overly generous compensation policies that drove many of them into bankruptcy, I don't know what to say. I think both the employees and the management caused the problem.
And the settlement is at the discretion of a bankruptcy judge...
As far as I know, on going businesses need to fund their pension funds adequately, where as SS was allowed to not do that.
But no business is ever expected to fund it's pension plan decades into the future. Business, unlike the government can go out of business at any time, so they must do more to make sure long term guarantees are secure.
If you don't think Social Security is funded adequately, write your Congress person and ask them to do what business would do, increase the funding.
We are still decades away from the shortfall. We could raise rates and probably solve the problem indefinitely. But we don't. We prefer to admire the problem then finding and implementing a solution. So we have things like SS shortfalls and train crashes, because we believe that paying for stuff is bad for the economy.
SS Disability goes short next year... Benefit reductions apparently start next year. And Medicare goes short in 2030 or earlier depending who you believe. (ie Trustees or the linked Harvard guys)
Well, it's a little different than we think. The SS trust fund depletion date has just been moved up a few years. And this is only a problem because we lack the political will to provide a solution.
ReplyDelete--Hiram
Agreed
ReplyDeleteThe real crisis is the fact that the move to defined contribution plans over the last 30 years has diminished the amount of retirement savings most retirees will have available to them when the time comes.
ReplyDelete"move to defined contribution plans over the last 30 years has diminished the amount of retirement savings"
ReplyDeletePeople choose not to save and invest, and again you blame it on others. Where does personal responsibility fit into your world view?
I of course am over joyed with having the freedom to save what I want and invest it where I want.
Do you really want big bother to be responsible for everyone's life and to make all of our choices for us?
Sure it is easy to save and invest on your salary. It is impossible to do so on minimum wage or even $30,000 a year if one is supporting a family.
ReplyDeleteI blame lack of retirement savings on low wage jobs rather than lack of responsibility.
Median household income in Hennepin county is $64,403...
ReplyDeleteWhy again is one person raising a family?
How many kids should a family making $30,000 have?
Forgot the Link
ReplyDeleteEven $100/mth over decades does wonders. And that $1000 is tax free in the IRA or 401K.
ReplyDelete"People choose not to save and invest, and again you blame it on others. Where does personal responsibility fit into your world view?"
ReplyDeleteThe move from defined benefit to defined contribution plans was not an organic one -- it happened at the behest of larger corporations who wanted to offload pension obligations.
"Do you really want big bother to be responsible for everyone's life and to make all of our choices for us?"
I fail to see what private pension plans have to do with "Big Brother".
Besides, guess who's going to be paying the bill for the destitute seniors damaged by these changes?
"Big Brother" to me can be Gov't or Business. Anyone who reaches into my pocket and puts my family's financial future at risk. Please remember that pensions have the same problems as SS.
ReplyDeleteWiki Retirement
"destitute seniors damaged by these changes" ... or
"damaged by their not planning and taken action to be prepared for retirment"
I guess... Actually worse than SS... It is unlikely the USA will go bankrupt.
ReplyDeleteWhy aren't you criticizing corporations for not following through on their end of the deal to fund pensions for the workers who have provided their labor and productivity over decades? Or do you only shame poor people?
ReplyDeleteAs far as I know, on going businesses need to fund their pension funds adequately, where as SS was allowed to not do that.
ReplyDeleteNow as for Union companies and the overly generous compensation policies that drove many of them into bankruptcy, I don't know what to say. I think both the employees and the management caused the problem.
And the settlement is at the discretion of a bankruptcy judge...
Was I on the right track with that answer?
ReplyDeleteAs far as I know, on going businesses need to fund their pension funds adequately, where as SS was allowed to not do that.
ReplyDeleteBut no business is ever expected to fund it's pension plan decades into the future. Business, unlike the government can go out of business at any time, so they must do more to make sure long term guarantees are secure.
If you don't think Social Security is funded adequately, write your Congress person and ask them to do what business would do, increase the funding.
--Hiram
I agree, they should have raised those payroll tax rates 15 years ago, when they knew the promised benefit would exceed the planned finances.
ReplyDeleteWe are still decades away from the shortfall. We could raise rates and probably solve the problem indefinitely. But we don't. We prefer to admire the problem then finding and implementing a solution. So we have things like SS shortfalls and train crashes, because we believe that paying for stuff is bad for the economy.
ReplyDelete--Hiram
Decades?
ReplyDeleteSS Disability goes short next year... Benefit reductions apparently start next year. And Medicare goes short in 2030 or earlier depending who you believe. (ie Trustees or the linked Harvard guys)