This weekend’s Townhall column underscores the real cost of the payroll tax hike, part of the “fiscal cliff” deal: The erosion of Social Security’s “safety net” feature. It ain’t a safety net when it precludes your own savings.
Go to Townhall and read the column, and come back here for a few links, for further thought.
Well, much of the background has been covered in past Common Sense episodes. But, when it comes to Social Security, there has been an almost concerted attempt by government folks to shield people from the truth about nearly every aspect of the program. Take the “employer’s contribution” to “your Social Security”:
2 replies on “Townhall: The Safety Net That Isn’t”
Right on. Now, what do we do about it? A politician has as much chance of being elected with a platform to end social security as a deer has of staying alive running into a Trophy Hunter’s convention.
I agree that understanding the problem is the first step in remedy, but that second step is almost impossible politically.
You describe Social Security as a trap. But, that Ponzi scheme is more of a trap than you stated. It is highly likely that within twenty years the Social Security system will not be able to pay retirees what they expected. It is likely that the initial fix to that problem will be means-testing retirees and reducing or eliminating payouts to those with the most money. Which means that saving for your retirement will be counter-productive. The more you save, the more the government will reduce your Social Security.
I still believe that saving for retirement is a good idea. It’s also possible that the Social Security system will respond to shortfalls with across-the-board cuts, or the system could be discontinued.