|
Until fairly recently, the amount withheld (based on the FICA rate and the annual max contribution) was fairly small. E.g., a person who retired at age 65 15 or twenty years ago would draw out dollar for dollar all their contributions in less than 24 months. With the increased FICA max and tax rates, it is not so for the current retiree...takes them around 5 years to draw out their contributions. And that number is going up rapidly.
I think part of the problem with privatization was that it failed to allow a younger worker to garner sufficient coverage early on to protect himself/his family from destitution in the event of a catastrophic injury/disability. Of course the argument can be made as originally designed, SS was just to cover old age or widows. In any event it was never intended to be a comprehensive coverage but rather a floor to build on.
SS will never go away...there are too many people vested in the program and to0 many politicians on both sides of the aisle that view it as a sacred cow.
|