Social Security Facts - #10:

Back at Social Security Facts - #7 I began to suggest work that needs to be done on the payout of Social security. Let's consider the three primary suggestions and consider them over the weekend.

• MEANS TESTING - in my mind the most important. I've been asked how you could do this ("Do we want the Government having all data on our incomes, net worth,etc.?") and respond that levels of means testing are done all the time - have you tried to buy a car or house lately? Doesn't seem to be a big deal to me.
• INDEXING - I feel automatic indexing should be eliminated. How about Congress giving retirees a "raise" every two years, with the rules for these raises being established by a committee of economists? This "raise" should cover inflation, not try to keep up with the wage rate. It could be skipped at times, or doubled at others!
• AGE OF ELIGIBILITY - already being nibbled at (I don't get Social Security until I am 66 years old, and younger people wait until 67. Lifespan has increased aproximately 10 years since 1935, so shouldn't eligibility be increased by 10 years? Probably not, since Social Security has always been triggered more my company retirement rules, which I do not have data on but do not believe have increase 10 years. But they probably have increased more than 2 years (65 - 67 for full Social Security).

All three must be modified to bring the program more in line with available resources over this century. My disappointment is that I do not hear these discussions from those who are refusing to consider personal accounts.

• John Fund recently quoted FDR from a speech at Oglethorpe University that "this country needs . . . bold, persistent experimentation. It is common sense to take a method and try it: If it fails, admit it frankly and try another. But above all, try something."

Without action, Social Security will fail. It is time to try something!

HAVE A GREAT WEEKEND!