Next, lawmakers should ensure that Social Security and other entitlements only go to those who need help. Bill Gates, for example, recently stepped down from Microsoft. In 10 years, this multi-billionaire can start collecting Social Security and Medicare. That’s absurd. Reducing payments to wealthy seniors would leave more available for lower income retirees.
Finally, our government needs to shore up Social Security with personal retirement accounts.
The concept is simple, and would work similarly to an IRA or 401(k). All workers would be able to invest a small percentage of their Social Security taxes in an account that they would own. The money would go into a few simple, low-cost investments that would grow over time, just as other retirement plans do. These accounts would not replace employer-sponsored retirement plans, but increase the ability of Social Security to pay benefits to them.
In 1940, Ida May Fuller received the first monthly retirement check sent by the Social Security Administration. The program served her well; she paid in a total of $24.75 and collected $22,888.92 from Social Security over 35 years.
That sort of math simply doesn’t add up anymore. Our country needs fundamental entitlement reform. And quickly -- before the growing tide of retirees overwhelms our budget.