Shaun is right and wrong. The cure for our abysmal savings rate is not SS, which is clearly broken and managed at the whim of politicians, always a disaster.
Interesting in that the current state of financial malaise in this country can be traced to the development of the nanny-state, the great society. I'd also add a dash of Ad Men as well.
How to fix it?
First, simplify the tax code. I'm a flat tax guy but many here are not, but we still have got to simplify.
Second, privatize SS along sound financial planning tenants. It is clear to me that many Americans have no interest in their financial future. I would cut the mandatory withholds in half to make the folks like me (who understand the really simple and basic tenants of financial planning and who may never see a dime of their SS "investment")) somewhat pleased and put the other half in sound, basic, get me 3% compound interest for 50 years investments.
Third. All private investments would be off budget, meaning they are not counted anywhere in the federal budget. Period. Gone.
Fourth. The money in the private accounts can not be used for any investment other than simple interest. No risk, lots of gain as the miracle of compound interest takes hold.
Fifth. No lump sum buyout at 65
unless you have $2M in personal funds accrued. One should be rewarded for sound financial planning and should have access to their funds.
Sixth. On the sixth day, I rest
