The real problem with out nation’s Social Security system is not that it will leave American workers in worse shape when they retire, as Steve Chapman wants us to believe in his March 7 column. The real problem with our nation’s system is that some people, like Chapman, want us to falsely believe that it should be scrapped and replaced with private retirement accounts.
Sure, some of us would be better off investing our own retirement dollars, but what happens to those of us who do not invest wisely or who cash out on a market low? Do we not care about those people? Should we just take out the word “social” from this system and replace it with the word “selfish”? I hope not.
Also, let’s not be so quick to knock down a system that has provided a lifeline to millions of Americans. Social Security is more than just a retirement plan. It is a family protection plan with benefits that cover all generations. The system has never missed a payment in more than 60 years and is on pace to continue this outstanding track record for the next 33 years. After that time it is up to us to make sensible adjustments so it will be around for future generations.
Let’s also think about who would benefit the most from investing our retirement dollars in private accounts. Administrative costs for Social Security today are less than 1 cent per dollar paid out in benefits. The average administrative costs for private insurers are 12 percent to 14 percent. Plus, if we switched to private accounts, we would still have to cover the price tag for current beneficiaries, causing us to raise the retirement age, cut Social Security benefits, hike taxes, eliminate cost-of-living adjustments or use some mix of all of these bad choices.
The security of our retirement, disability and survivor protections for working families should be guaranteed for all of us–rich or poor–as it is now.
