Date: Sat, 28 Jan 2006 07:37:01 -0600
From: "John A. Weeks III" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Baby Boomers
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In article ,
 "Elle"  wrote:

> I have not seen such a high age (79) proposed for putting
> today's SS system in the black for the long-term. For the
> short-term, SS expenses are projected to be less than
> revenues for at least a decade more. So currently, the
> annual budget of the system may be said to be in balance.

I am not talking about putting the system back in balance.
I am talking about returning it to its original purpose
as a safety net for the oldest of the old rather than being
a national pension plan.

When social security was created, 65 was picked because
so very few ever reached that age when they were born.
Today, when born, most people make it to 65 and live
far beyond that age.  As a result, people now view social
security as a pension plan so you don't have to save
for retirement.  That is a completely different view of
social security from what it was when it was created.

If we want to return social security back to its original
purpose where only 1 in 25 ever reached the age where you
can draw, that age is going to have to be pretty high.
In fact, it has to be around the number that is the life
expectancy at birth, maybe just a little higher.  And it
has to be adjusted as life expectancy changes, something
that has never really been done with the existing social
security program.

If the US government wants to provide a national pension
plan, then congress should vote in such a program, and it
should be designed as a pension program.  What we have today
is an accidental pension program that is organized in a
very poor manner that has the potential to be a financial
disaster in the future.

-john-

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John A. Weeks III           952-432-2708            john@johnweeks.com
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