" wrote in message
...
On Oct 25, 3:39 pm, rw wrote:
wrote:

The SSI system is and always has been an entitlement/welfare system
masquerading as a retirement system. It is probably by far the
largest accounting gimmick of all time, with the social left and
right, each for its own reasons, pretending that payments represent
some sort of investment with some sort of future return, while
presidents and congresses from Nixon's time on have used the payments
to hide the true extent of their spending deficits. Anyone counting
on, or assuming that they are "owed," any sort of decent future SSI
payments upon retirement 10-15 years out is likely to be sorely
disappointed. Eventually people will catch on, maybe, forcing a
dialogue about the fundamental issue of entitlement for the elderly,
but until then we'll continue to have these surreal whatifs tossed at
us. Personally I believe that we should provide a base income to the
elderly, inversely indexed to other retirement income, but I don't
assume or expect to receive much of it, if any.

The SSI "crisis" could be fixed by means testing. Wealthy people don't
need it.

I doubt that the political will exists to do it.

I'm sure if you gave them the option to opt out of the program
most would. I know I'd agree not to take any SS if they agreed
to stop taking the money from my paychecks.....
.....or was that not what you meant? :-)
- Ken


It was not always the national retirement system. It was originally the
Widows and childrens act to keep the poor widow and children from starving
when the wage earner died. Which was usually the mail. The original rate
was 1% of (I think) the first $1500 if earnbed income. As late as 1963 I
still managed to get a raise in my paycheck about 2/3 the way through the
year as an apprentice making $62.50 a week. The amount paid into the system
was 1% of the first $3300 income. So between the employer and employee the
total investment was $660. And this gave you and your family a livetime
disability plan. Not until LBJ needed more money for himself and the wife
via war and he raised the rate of payment and the limit and promised more
money to the masses. Gave a huge increase in Federal revenue and little
extra expense in those days. But the expense has risen exponentially while
revenues have not. Most of those collecting SS now did not pay in enough to
really justify the high checks. Buy an insurance policy that covers you for
death and disability and figure out what that would have cost you a year,
and then on top of that the amount of money that you would have to put into
an annuity to get the present returns. Probably a lot more than most of us
paid in. The rate for the youg people like my kids is probably enough to
cover the payments, except this Ponzi scheme will have paid out the money to
us early collectors. What happens in 15 years when there is only 3-4
workers for every retiree?