Last week I commented on the unspoken (at least by anyone who wants to be President) state of Medicare. Now it appears that Social Security is a mess too. (I know, big surprise!) In the March 31, 2008 edition of Fortune, Allan Sloan reports that in about 10 years, Social Security will start spending more money than it takes in. By 2020, the number is – $96 billion.
Here are our options: 1) Raise the minimum retirement age; 2) Increase the employer and employee contributions from their respective 7.65% rates; 3) Reduce current and/or future payouts, or 4) Get rid of the whole thing and force people to take personal responsibility for their retirement.
Of the options, I like #4.