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Give Low-income Earners Exit from Social Security
Townhall.com ^ | December 16, 2013 | Star Parker

Posted on 12/16/2013 6:20:55 AM PST by Kaslin

A new study just published by the National Institute on Retirement Security – “Race and Retirement Insecurity in the United States”- presents a dismal snapshot of the state of retirement savings of minority American families.

It reports that 54.3 percent of blacks work for employers that offer retirement plans compared to 62.3 percent of whites. And 43.9 percent of blacks participate in those plans compared to 53.9 percent of whites.

Among Latinos, 37.8 percent work for employers with retirement plans and just 29.7 percent participate.

Only 37.9 percent of non-white Americans have assets in a retirement account compared to 63.4 percent of whites.

And the mean amount of retirement savings held by black households is $20,132, by Latino households is $17,600, compared to $111,749 held by white households.

Many, usually those on the left who claim to represent the interests of low income Americans, say the answer to retirement security for minorities is Social Security.

But Social Security, a demonstrably bad deal to begin with, is broke.

Log on to www.socialsecurity.gov/estimator/. This is the Social Security Administration’s calculator where you can estimate your retirement benefit.

The site warns that the benefit estimate it reports for you may be different from what you actually get for various reasons, including “…by 2033 the payroll taxes collected will be enough to pay only about 77 cents for each dollar of scheduled benefits.”

In other words, the Social Security Administration has announced to all Americans now in their forties and younger, who will be retiring in 20 years or more, to expect only a little more than 75 percent of their promised benefits.

Year after year our brave politicians in Washington, who will claim they are looking out for us, hide from this huge problem affecting almost every working American.

They hide because it is hard. If payroll taxes, as the Social Security Administration indicates, are almost 25 percent short to pay required benefits, then taxes need to be raised by almost 25 percent to make up the difference.

What politician is going to propose this? Other options are to cut benefits paid or to raise the age at which they can be collected.

Another possible outcome, so typical of what we can expect from Washington, is to “means test.” That is, leave everyone paying taxes, but remove benefits for those above a cut-off income level.

This would essentially turn Social Security into a welfare program.

The bottom line is that minority Americans, who on average constitute our lowest income earning Americans, get the worst deal of all. They don’t have extra resources to put in a wealth building retirement account. And the resources they do have are taxed into a Social Security system that pays out a poor benefit which in another 20 years won’t even entirely be there.

End the tyranny. At least give low income Americans the option to get out of the Social Security system. Allow them a choice to take their payroll tax and invest those funds to build their own retirement account nest egg.

Conservatively invested funds over a 45-year working life can produce savings that will pay retirement income several times greater than Social Security benefits.

Over thirty years ago, workers in Chile were given the option to opt-out of their Social Security system. A recent report from a Chilean consulting firm, Dictuc, indicates that private accounts in Chile payout retirement income equal to 87 percent of what workers were earning before retirement.

Today’s Social Security benefits, even forgetting about the upcoming shortfalls, don’t match 50 percent of pre-retirement income

Let’s help solve our national dilemma and also give low-income wage earners freedom and dignity and a chance to build wealth. Give them the option to get out from under Social Security and save in a personal retirement account.


TOPICS: Culture/Society; Editorial; Government
KEYWORDS: socialsecurity
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1 posted on 12/16/2013 6:20:55 AM PST by Kaslin
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Comment #2 Removed by Moderator

To: Kaslin
The bottom line is that minority Americans, who on average constitute our lowest income earning Americans, get the worst deal of all.
3 posted on 12/16/2013 6:28:36 AM PST by oh8eleven (RVN '67-'68)
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To: Kaslin

We have no idea of what will be available in 2033 to pay SS recipients. It’s a big guess depending on employment stats & incomes.


4 posted on 12/16/2013 6:29:12 AM PST by Sacajaweau
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To: Kaslin

At 33, I would GLADLY sign any paperwork required to exempt me from Social Security and allow me to reinvest that money in my own managed retirement fund. I would swear/promise to never submit an application for SS in the future and understand that if I did, I would be subject to fines and or legal action.

I know I’ll never see a dime of the money I am or have put in, and I would gladly take that extra money every paycheck for my own savings.

It’s a God forsaken tragedy that over 60% of whites have money in retirement accounts yet we’re seen as “bad people” or otherwise “keeping the black man down” because they don’t have the drive to want to do better for themselves. Instead of other races and cultures looking up to white Americans, they’re trying to drag us down to their level, and that’s a freaking disgrace.


5 posted on 12/16/2013 6:30:20 AM PST by rarestia (It's time to water the Tree of Liberty.)
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To: Kaslin
They hide because it is hard. If payroll taxes, as the Social Security Administration indicates, are almost 25 percent short to pay required benefits, then taxes need to be raised by almost 25 percent to make up the difference.

This is BS! It's all in a lockbox! Algore told me so!...................

6 posted on 12/16/2013 6:32:54 AM PST by Red Badger (Proud member of the Zeta Omicron Tau Fraternity since 2004...................)
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To: Kaslin

Low income earners don’t have the brains to figure out they’re being screwed. The issue will be demigogged.


7 posted on 12/16/2013 6:33:14 AM PST by DIRTYSECRET (urope. Why do they put up with this.)
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To: Kaslin

“Allow them a choice to take their payroll tax and invest those funds to build their own retirement account nest egg. “

They can’t manage money now and this idiot thinks they will invest in anything but leases on BMW’s, hair “perms” and nails? I would only be for it if they had to sign waivers absolving taxpayers of any future responsibilities for supporting them in their “retirement” years.


8 posted on 12/16/2013 6:34:39 AM PST by freeangel ( (free speech is only good until someone else doesn't like it)
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To: rarestia

At 49, I would happily forgo Social Security if it would allow me to invest half of what I remit to the program.


9 posted on 12/16/2013 6:35:18 AM PST by yuleeyahoo (Liberty is not collective, it is personal. All liberty is individual liberty. - Calvin Coolidge)
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To: Kaslin

Star - Low income earners is who Social Security was designed for!


10 posted on 12/16/2013 6:38:32 AM PST by Larry - Moe and Curly (Loose lips sink ships.)
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To: Kaslin

This is a foolish article for a failed and foolish program. The poor will no more save if opted out of SS than if they are in it.

The poor will always be poor and we will not stop that.

Better yet, phase the program out entirely. Do not replace it though with another Wall Street gift like the 401.

At best replace it with a program like Chile’s or Galveston Texas’.

Means testing and endless exceptions are not constitutional and neither is the progressive tax.

Whatever. What we think, what I think makes no difference.


11 posted on 12/16/2013 6:40:18 AM PST by Sequoyah101
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To: Kaslin

Where are the Asian retirement figures?

Oh,that’s right,they are successful minorities and don’t count.

.


12 posted on 12/16/2013 6:40:32 AM PST by Mears
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To: Kaslin
End the tyranny. At least give low income Americans the option to get out of the Social Security system.

And why only low income earners? How about letting everyone invest their own money if they choose?

Oh, yeah - the whole ponzi scheme thing...
Well, everyone in the pool.

13 posted on 12/16/2013 6:42:33 AM PST by grobdriver
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To: Larry - Moe and Curly
This would essentially turn Social Security into a welfare program.

It was designed to be that - a safety net, not a retirement plan.

What do those signs in the national parks say: Don't feed the animals, they will get dependent on the food. Humans are no different.

Why save when you know the government will take what *you* have worked for to give to those who didn't plan ahead.

14 posted on 12/16/2013 6:46:44 AM PST by ladyjane
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To: ladyjane

Ah - Star Parker. I hadn’t realized she was the author. After reading the post I wondered what kind of person could write this baloney. I should have known.


15 posted on 12/16/2013 6:48:33 AM PST by ladyjane
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To: Red Badger

“They hide because it is hard. If payroll taxes, as the Social Security Administration indicates, are almost 25 percent short to pay required benefits, then taxes need to be raised by almost 25 percent to make up the difference.”

Taxes will not happen, but more borrowing will. The SS bills will always be paid. That is how you keep the masses content. Just like EBD cards, there will always be enough money to cover it. Same for disability payments.


16 posted on 12/16/2013 6:49:05 AM PST by WILLIALAL
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To: Kaslin

We must do away entirely with the idea that a monthly pension check from the government is a good idea. People should have full control of their retirement funds and should manage their affairs responsibly. This is true freedom.

I know many won’t and they will become dependent on welfare or private charity. As evidenced by the story, even with social security, we will always have that problem.


17 posted on 12/16/2013 6:51:12 AM PST by 3Fingas (Sons and Daughters for Freedom and Rededicaton to the Principles of the U.S. Constitution...)
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To: Sacajaweau

That is very true. We also have no idea if anyone is still around in 2033


18 posted on 12/16/2013 6:57:09 AM PST by Kaslin (He needed the ignorant to reelect him, and he got them. Now we all have to pay the consequenses)
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To: Kaslin

We need a solvent national pension for people who don’t waht to think about it or are not financially literate, a voluntary one.

Social Security needs to be there for those whose ability to save for retirement was leeched away, many have no option. Phase out, buyout, I have no idea what would both work and be politically acceptible.

401K plans have been more of a boon to the wrong people than the recipients of the plan, the billions of inflow every month have hidden all manner of malfeasance to the point that I distrust stock valuations.

Flame away.


19 posted on 12/16/2013 6:57:15 AM PST by RegulatorCountry
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To: Kaslin
Social security would have worked fine if the guberment had not gone out on a drunken binge and spent $13.4T on pork. They keep screwing things up so for make work projects later.
20 posted on 12/16/2013 6:58:35 AM PST by mountainlion (Live well for those that did not make it back.)
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