TalismanRich
Well-known member
The government is already planning for that. Its one of the reasons that 401K/IRAs are being pushed so heavily. There are no pension systems left for new workers these days. Anyone who even contributes even modestly to a Roth IRA can easily build a respectable fund. Compounding and aggressive investment strategy will beat SS any day. You don't need to be a millionaire to save for retirement if you start early!
The problem will be when the government decides to tax those "tax free" retirement funds in 20 or 30 years. Social security used to be tax free. The government changed the rules in 1983 when benefits became taxable. To me, that was stupid. Pull extra funds out of the SSI trust, and then tax them for the general fund. Net result, SSI goes broke faster, and you end up losing.
You think they won't change the rules any time it's convenient?
The problem will be when the government decides to tax those "tax free" retirement funds in 20 or 30 years. Social security used to be tax free. The government changed the rules in 1983 when benefits became taxable. To me, that was stupid. Pull extra funds out of the SSI trust, and then tax them for the general fund. Net result, SSI goes broke faster, and you end up losing.
You think they won't change the rules any time it's convenient?