Monday, April 30, 2012
A simple solution to strengthen Social Security
Rightardia suggests there is one way to strengthen Social Security that could help the Social Security trust fund and the tax payer as well.
Simply allow taxpayers to contribute more money to their Social Security savings accounts in $100 increments per month.
Such contributions would be added into the saving accounts of the Social Security contributor and result in a bigger payout upon the contributors' retirement.
Such contributions would be safer than IRA constitutions which can be eaten up by management fees. Unlike IRAs, Social security should not allow early loans or withdrawals.
Social Security withdrawals or loans should not be permitted. Such loans would create an administrative burden for the government. This would be a downside for these accounts compared to IRAs.
Rightardia notes that the US government cannot go bankrupt, but a bank or insurance company can. This would make such a program very secure for contributors but they would lose the flexibility for loans they have with the IRA.s
This would be a win situation for the government that would see the trust fund assets increase by billion of dollars.
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