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Entries in Social Security (45)

Friday
Aug222014

Smith For US Senate - Bob Smith’s Freedom Retirement Accounts 

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Current projections for Social Security’s future are bleak. The Social Security Old Age and Survivors Insurance Trust Fund is expected to run out of special issue government bonds in 2033 and the gap between Social Security expenditures and Social Security receipts, already growing, is expected to widen at an accelerating rate.

 

This accelerating shortfall threatens to rob current recipients of the income that they were promised and currently rely upon and could very well lead to the bankruptcy of our country. Meanwhile, younger taxpayers largely believe they will never see the money they put into the system. 

 

 An actuarially sound approach does exist which would help reduce the shortfall risk those currently relying on Social Security face while giving new hope to those in their twenties and thirties who are set to retire during the worst days of the crisis.  

 

To reiterate, this proposal would not alter the current program for present or future beneficiaries except to improve projections. Those beneficiaries who do not wish to make any changes to their accounts would simply choose not to do so. The decision to participate is entirely voluntary.

 

In return for choosing to accept a permanent reduction in benefits (similar to the current reduction one takes when one starts receiving benefits at age 62) a percentage of a young taxpayer’s monthly FICA payment would be deposited in a Freedom Retirement Account at a local bank in his or her name. Importantly, the amount invested would always be a smaller percentage of his or her FICA payment than the percentage by which future benefits are reduced. In this way, while aggregate revenue declines slightly, aggregate projected benefits would decline further, thus narrowing, instead of widening, the projected shortfall.  

 

This option would allow the owner of such an account to take a small amount of money and, with the benefit of compound interest, enjoy a far greater amount at retirement than Social Security promises to provide. 

 

Investment options would be restricted to commission free mutual funds, the sole investments of which must meet those required of fiduciaries: investment grade bonds, investment grade securities, or a combination thereof. These accounts would be restricted and withdrawals could not occur until the owner reaches retirement. The account would be the accountholder’s property and, within the aforementioned limits, completely under the owner’s control. 

An additional, and very significant benefit of Freedom Retirement Accounts would be the resulting increase in private investment capital.

 

Since the government’s projected shortfall would decline whenever an individual exercised the option to establish a Freedom Retirement Account, exercising that option would be encouraged. The accounts would be tax exempt and an increasing percentage of monthly FICA payments would be available for investment as Social Security Investment Account holders advance in age.

 

Young professional men and women who establish Freedom Retirement Accounts will be significantly closer to real retirement security. 

 

Freedom Retirement Accounts will not entirely solve the Social Security crisis, but they would be an important step in the right direction.

 

Freedom Retirement Accounts:

  • Reduce the likelihood of Forced Reductions in Social Security Payments
  • Extend the Social Security Old Age and Survivors Insurance Trust Fund’s Solvency
  • Require No Change in Social Security Recipients’ Options
  • Permit Limited Private Accounts to Supplement Social Security at Retirement

 

If returned to the Senate, I will work to ensure Freedom Retirement Accounts become a reality.



Paid for by Friends of Senator Bob Smith for US Senate

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Thursday
Aug142014

NHDP - Granite State Forward to Hold Senior-to-Senior Phone Banks Across the State on 79th Anniversary of Social Security

Manchester, NH -- Tomorrow, the New Hampshire Democratic Party's coordinated campaign, Granite State Forward, will be holding senior-to-senior phone banks across the state to highlight seniors' issues and honor the 79th anniversary of the passage of the Social Security Act. One of these phone banks -- in Portsmouth -- will be open to press.

Jeanne Shaheen knows that seniors deserve to retire with dignity, with the peace of mind that Social Security will be there for them. When Republicans tried to force deep cuts in Social Security with a spending plan that was opposed by the AARP, Jeanne Shaheen led the fight against their dangerous scheme.

Carol Shea-Porter is working to strengthen benefits seniors earned through a lifetime of hard work. She opposes budget plans that would end the Social Security and Medicare guarantees for older Americans, and understands that benefits must keep pace with the cost of living for Granite State seniors.

The phone banks will feature New Hampshire seniors calling other seniors to discuss what is at stake in the upcoming election, like preserving Medicare and Social Security, and reducing health care and prescription drug costs. Participants will clearly define the differences between the Democratic candidates, who are fighting to prevent deep cuts to benefits and avoid a spike in pharmaceutical drug costs, and the Republican candidates, many of whom would vote to reopen the Medicare Part D donut hole and even privatize Social Security.

Who: Democratic volunteers, activists and community leaders
What: Senior-to-Senior Phone Banks Hosted by Granite State Forward
Where: Portsmouth
When: TOMORROW, Thursday, August 14th, at 6:00pm

Please RSVP to Bryan Lesswing at blesswing@nhdp.org for more details.

Monday
Apr142014

Heritage - What No One Wants to Admit About Social Security Taxes 

April 14, 2014

 

What No One Wants to Admit About Social Security Taxes

It’s a bummer when you see how much income tax comes out of your paycheck. But when you see that Social Security line item, do you think, “At least that’s going to pay for my retirement”?

It’s not.

The tax money you’re paying into Social Security today is going to fund today’s retirees. Who will pay for your benefits? The next generation of workers.

And the payout gets worse with each generation.

>>> Read More

An IRS Employee Urged People to Reelect Obama Obama Picks Overseer of Government Shutdown Decisions for HHS

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Thursday
Jun132013

ALG's Daily Grind - Disability disaster looms 

June 12, 2013

 

Disability disaster looms

America's disability epidemic cannot be chalked up exclusively to an aging population.

Cartoon: Sinister entity

Is there a lurking tyranny just around the corner?

Is privacy an illusion?

Is the government lying about the scope of its spying?

Goodman: What Paul Krugman and the New York Times don't know about healthcare reform

"Only 7.2 percent of the uninsured will fail to get insurance because half the states don't expand Medicaid? We could fail to insure that many just by bureaucratic snafus alone."

Tuesday
Sep252012

ALG - Obama won't deal with Social Security

Sept. 24, 2012, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement responding to Obama strategist David Axelrod's refusal to "have [a] discussion right now" about Social Security because "Social Security is a more distant problem":

"It truly is pathetic that David Axelrod, the chief strategist for Team Obama, admits they have no plan to proactively work toward fixing any entitlement program like Social Security until the program reaches a crisis level. This is not the kind of leadership that America expects from their president, but is revealing about the central tenet of the Obama Administration. Bounce between crisis to crisis reacting with big government 'solutions' rather than anticipating problems and working to deal with them before we hit the brink of a government shutdown, default on our debts or even failing to meet obligations to seniors and pensioners.

"Adults don't act this way, Obama's term in office has proven that he neither has the vision or courage of an adult leading our nation, but rather Obama's term is more like a petulant child who is always pointing his finger at others. Our nation faces a world of nearly unprecedented financial and international peril; it is time for the adults to take over."

To view online: http://getliberty.org/obama-wont-deal-with-social-security/

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Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.