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Old 12-06-2011, 10:47 AM
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FattyMcGee FattyMcGee is offline
Join Date: Jan 2007
Posts: 15,408

Originally Posted by Salzmann View Post
I wish. First of all, the people who opt out will include a large number of people who can do better saving the money on their own because of SS's progressive benefit structure (lower-income earners get a higher % of average wages in their benefits). Thus, the transfer of $$ from the high earners to the low earners is impossible. There will also be a lareg segment who won't or cannot save but will opt out anyway. They'll reach old age with no money and wonder why "the government" doesn't help them and, because it's politically unpalatable (and not nice) to let masses of needy people die, funds will be found to support them. SS, at least, is some forced savings.

It occurred to me that you may have been facetious and you know all this. But believe me, I wish I could opt out! Getting all my contributions (and employers' contributions) back starting with the withholdings from the week I delivered telephone books when I was 17 would be nice, too.
The Opt Out I have proposed (multiple times!) would not give you anything back, and would require you to pay in for a certain # of quarters before being allowed to exercise your option. The exercise window would not be open indefinitely, but would close at some time (maybe, 10 years?) before normal retirement age so that people would not be foolish with their own last few years of income.

That, combined with the elimination of the upper limit on contributions (but keep the limit on benefit accrual, thus making the system more progressive), could eliminate the "problem". How much "solve" happens is dependent on how many people can and do opt out.
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