Voters are better nervous every time the President discusses about social security change. The only way to repair the program is to remove politicians from the road.
That means creating a legal right to the promised benefits, establishing a Trust fund Congress cannot touch, and allow individuals to manage their own retirement fees. These three steps are practical, more popular with voters, and ensure the solvency of the Social Security System of generations.
The first step is strong social security system obligatory to pay all the promised benefits of all who pay the system. Most think that is the way the system has already worked.
However, a 1960 supreme court ruling determined without such legal obligations. Only 24% of the voters today know that their future benefits are subject to congressional and president’s leaders.
The second step is to make a true independent social security fund where the principal and interest is fully protected for retirees. Sixty-three percent think that this is the way it works. Instead of becoming part of the federal budget, these voters falsely believe that it is a different program paid by salary workers’ contributions.
There is a reason that people believe in things – what politicians say in decades. This is the way in the past time to close officials false by making the program what the voters believe.
Because of that long term ruling in court, a constitutional change is necessary to implement reforms. Not surprisingly, however, 74% of voters support such a change.
Once again, what does an independent confidence fund look like? Sad for the government to put money in stock market, and most voters are against such a plan.
A reasonable approach is to have funds purchased by Deposit Bank Certificates. To eliminate unnecessary risk, perhaps the Trust Fund must start with the smallest banks and buying CDs equal to the less than 10% of bank deposits. If the threshold can be reached, trust funds will buy CDs from the next, larger bank.
With the legal rights of the promised benefits established and an independent confidence fund established, voter confidence is restored. Social Security finally operate in political claims since the 1930s.
With confidence restored, the third step to Social Security healing is to make financial trust funds. The key to keeping it is the decision to decide – that has turned away politicians and give each American more control over his retirement planning.
Voters should be free to adjust their age retirements and social security payments. That method is very popular and, as any good exchange, an adjustment will benefit both parties. Every adjustment makes the confidence stronger and make a retirement better to achieve every person’s needs.
Seventy percent of voters have favored this procedure, and only 18% were opposed. What does it look like?
A 70-year-old man can guard the benefits for an additional five-year period in exchange for a small maximum monthly benefit. This simple change will make the Social Security Trust fund more solvent because it has benefits in fewer years. On the other hand, the man had a slightly higher income when he was 75. Or, of course, he could decide to repay again!
Another option can allow a 40-year-old mutual retirement by paying higher Social Security tax for the rest of his career. The system is stronger due to his higher tax payments and he will benefit from an early retirement.
Countless trades are reasonable to workers at different points in their lives.
Everyone will improve their Solvency Retirement on Social Security Trust Fund. A practical approach can allow young workers to reconsider their plan every 10 years, while those who are nearly retiring can adjust every five years.
Regardless of details, these three steps to save social security is popular because they are all about the pressure of Congress to prevent their hands on our social security.
Scott Rasmussen is President of RMG Research and the Builder of the Naperbanitan Institute / Indoncesures
