All families need income security and health care. Since 1935, Social Security has been available for income support in old age; however, it was created at a time when people rarely lived into old age. My, how things have changed!
Medicare, which is health insurance for those in late life, with renal failure, or disabled, was created in 1965.
Both programs have been crucial to reducing poverty and maintaining independence in old age. Because of these programs, the chances of Mom or Dad relying on you financially in their old age have been greatly reduced. However, both are unsustainable in their current forms for the future, and few young adults believe that social security will be around for them.
MSNBC is reporting today that Obama wants to reform both programs. http://www.msnbc.msn.com/id/28686114/In what ways he wishes to do this are not clear.
As the article states, other presidents have tried and failed to win public and congressional support for reforming these entitlement programs. I encourage you to learn more about these programs and the roles they have played in the lives of older American families in recent years. Try the Urban Institute's site http://www.urban.org/toolkit/issues/socialsecurity.cfm and the federal government's Medicare website http://www.medicare.gov/Library/PDFNavigation/PDFInterim.asp?Language=English&Type=Pub&PubID=10050 for more information on these two important programs.
Tell me your concerns and ideas about financing your future income and health care.
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Kathy, great blog. Both my wife and I are planning for $0 in government retirement funds (social security, Medicaid, etc.). Our gov't been overspending for years now, just look at our national debt. Sooner or later we will have to pay the piper. Unfortunately, I believe we (the taxpayers) will have to flip the bill. I am excited to see if Obama's mantra of social/personal accountability will become mainstream within the general US public.
ReplyDeleteI agree with Dan as far as relying on the government for any sort of retirement plan. I am looking forward to seeing what Obama suggests as far how to reform or change the current system (which as you mentioned cant last) I am interested (personally) in the concept of partial privatization maybe as a stepping stone towards eventaul full privatization. However, there are several aspects of this that I admit I don't fully understand. No matter what Obama proposes I think that it will have to be a gradual change and I'm not sure that the structure of our government is set up to support this type of drastic change over a period of time. What are your thoughts on privatization?
ReplyDeleteI'll take my chances with a partially privatized account. As is there is a guaranteed ZERO in my current account. I don't mind putting into a system for those that need it. I understand that my contribution is meager and may only pay for 1 or 2 meals a week for someone (if that). I would also like to guarantee that I have some control and oversight of my own retirement.
ReplyDeleteThe privitization plan floating around for the last few years advocates a mix but has a greater upside potential. There is a fear that it too (like health care) could easily be corrupted or greed bound, but I also think that there could be restrictions on junk bonds, snake oil sales, or other risky investments, similar investment restrictions already exist in the 401K, IRA, or Roth IRA retirment packages. I don't think the transition would be that hard, I just think there is a big fear to have an already crippled system have the boat rocked, lose its even keel and go under quicker than anticipated
Dan: Too bad his Mantra doesn't seem to apply to his cabinet picks for top government officials who don't believe in paying taxes (just in getting paid by the government). ;) Until I see it in action by his own administration it is Rhetoric, what we want to hear and nothing more.
ReplyDeleteSS is a virtual unknown. We all know it needs to be changed, I don't believe it will ever be completely eliminated. Do I believe it will pay for retirement? Certainly not. I do expect that it will contribute something (aka 10%, whatever), as all those who have paid into it will demand they get something back. The question as always is where the money is going to come from.
Medicare is actually the larger concern to me. With the rising cost of medical care a loss of benefits in this program could really do a future generations head in.
My money is with the private accounts. I fully expect I will keep paying taxes, but taxes are not what will be paying me when I get old. Maybe I will become a slumlord or something. Ya know what they say, you cant make more land!