Republicans vs Democrats on Social Security

[Ferd]

Originally Posted by jfrog

A strong "guarantee" is not an "absolute" guarantee. That is my problem with the privatize mindset. Sure it will be great to have it privatized until that one time when it fails because it is not absolutely guaranteed.

Of course the debt our current system causes throws a whole other variable into the equation because as it is now the absolute guarantee method cannot be sustained. So, maybe even if privatization has flaws then it is still better than an unsustainable system? It would appear to be. But I have one question... how does the privatization method affect an elderly person who didn't work all her life? Will that system still help her or does it only help those who worked their whole lives?

Two points, I think there can be some backstop. I think democrats would want that on the table if they ever got to the table. Some way to have Government give some degree of a backstop for a catistropic failure.

However, if structured correctly, the only time you would see retirement plans fail would be in a world wide collapse that would also impact the governemnt.

The thing we have to realize is that there is no such thing as an Iron clad guarantee now, and with each passing day, the guarantee the government has made us grows weaker.

When you speak of a woman who has never worked, I assume you mean she is married to a man who did and who paid into the system. in the current system, she would get a smaller percentage of his SS check in her retirement years, the SS website calculator I posted can give you that information.

But what you need to know is, that this number is SMALLER than the income from SS they got when her husband (in this scenario) was alive.

In a privitized system, the money the man paid into the system is part of his estate. So his "nestegg" is still there when he dies. His widow, still has all of that money and still draws based on the same numbers that existed when he was alive.

and when she dies, the estate passes to their heirs. This is important.... the government doesnt get any of the money. It is thier money.