If one assumes that price-to-earnings ratios will be held roughly constant, then a cut in the growth of real corporate profits, from the 3. The difference for a long-term investor is enormous.
The biggest near-term problem with this proposal is the cost of the transition. Bythe year in which the trust fund is now projected to be depleted, the youngest baby boomers will be 68, the oldest Under this plan, people already retired will see their benefits lowered 1.
The Moynihan-Kerrey plan would also impose substantial costs on those retiring in the next two decades, but, in addition, it would significantly reduce benefits for those already retired.
We want to engage the American public in this very important debate. Most workers have low earnings when they are young, so they will put very little aside in their early years and will thus benefit little from having the interest on these savings compound for a long period of time.
And it's a much better solution than doing nothing and leaving a much bigger crisis for future generations. For example, here's one combination of cutbacks that would balance the books: Based on our current knowledge of the workplace and the labor market for older workers, raising the retirement age now would create an unfair burden on people who have spent a lifetime working for a living.
To avoid this problem, the federal government could commit to a schedule of payments independent of its fiscal position in any particular year; in other words, it could add the specified amount to the Social Security fund even if the surplus turned out not to be as large as anticipated.
The self-employed and certain smaller business owners would be hit particularly hard. In fact, the l ow-wage worker in is projected to earn more than the average-wage worker does today.
These are workers who have seen stagnant or declining wages for much of their working careers and now face the threat of downsizing as they prepare for retirement.
The Scheiber-Weaver plan poses less of a threat to older workers, but in the longer run it will substantially reduce the benefit levels and security provided through the Social Security program. Forty-seven percent said they trust President Barack Obama to do a better job on Social Security, and 44 percent said they trust his Republican opponent, Mitt Romney.
In this view of the world, since our children and grandchildren will be far wealthier than we are today, there seems to be little justification for taking away benefits from the current elderly in an effort to aid future generations who are presumably going to be very well off.
But Jeff Victory of Nashville, Tenn. The biggest near-term problem with this proposal is the cost of the transition.
Unfortunately, the people who develop and decide upon Social Security plans are mostly among the small minority of the workforce that could reasonably be expected to work until It also shows the benefits that these workers would receive under the existing system.
This means that we are much richer relative to our parents than we have recognized, and that our children will be far wealthier than we have projected.
The No-Nonsense Way to Save Social Security No frills here. Just a simple solution right under the noses of lawmakers that would fix Social Security for 75 years. Aug 27, · WASHINGTON (AP) — Most Americans say go ahead and raise taxes if it will save Social Security benefits for future generations.
And raise the retirement age, if you have to. Both options are preferable to cutting monthly benefits, even for. GOP Plan to Cut Social Security-Reported as Fiction!
Summary of eRumor: GOP leaders and/or President-elect Donald Trump plan to “massively cut” Social Security by raising the retirement age to 69 and taking other steps in order to save Social Security have gone viral. Social Security is running out of money and could be broke by But politicians may not like these proposals to save the program.
Social Security is running out of money fast. The report from the trustees of the Social Security program estimated that the trust fund reserves will run out in That means Social Security won’t be able to pay full retirement.
Jun 22, · Kotlikoff insists on calculating Social Security’s true cost over an “infinite” time frame, which he says is the only way to see how the program shifts the burden on future generations.The steps to save social security for future generations in the us