In response to:

Australia vs. the United States: Two Charts that Tell You Everything You Need to Know about Social Security Reform

Jim5522 Wrote: May 03, 2012 11:24 AM
Sure, no problem, of course you do realize that Chile's government had to borrow billions to continue the payments for those already or soon to be on social security? So I'm guessing your okay with our government going deeper into debt from borrowing the trillions needed to cover the 65 million already on SS until they all die off over the next 40 years?
*Cato* Wrote: May 03, 2012 11:58 AM
I should have said:

"There's three ways to crack that nut, if in fact Chile is borrowing "billions" to make current payments, which I highly doubt from the research I've conducted since that research shows that the entire Chile retirement system is PRIVATIZED. In other words, the government of Chile makes no current payments".
*Cato* Wrote: May 03, 2012 11:43 AM
There's three ways to crack that nut, if in fact Chile is borrowing "billions" to make current payments, which I highly doubt from the research I've conducted.

But, let's just say (Ron White's favorite lead-in)......

1. Peg SS increases to the CPI or to the wage index, whichever is lower.
2. Raise the retirement age to 72 for males and 74 for females.
3. Allow opt-outs for those less than age 55.

Problem solved -- for both Chile and the U.S.

There are two serious problems with America’s Social Security system. Almost everyone knows about the first problem, which is that the system is bankrupt, with huge unfunded liabilities of about $30 trillion.

The other crisis is that the system gives workers a lousy level of retirement income compared to the amount of taxes they pay during their working years. Younger workers are particularly disadvantaged, as are African-Americans because of lower life expectancy.

These are critical issues, but perhaps looking at a couple of charts is the best way to illustrate why the Social Security system is inadequate.

Let’s start...

Related Tags: Social Security Reform