If you ever want to see what generational political differences Baby Boomers have with my generation (Gen X) and others behind me, bring up Social Security.
It doesn’t end well.
Social Security is not a Ponzi scheme. Those are voluntary. Social Security is a financial train wreck and the federal government even admits that every year in their annual report on the program. Several years back, my wife and I agreed to not even talk about relying on Social Security for our retirement because it will not be there for us.
Even with all the years of gross mismanagement of the program, government has decided to give it the ol’ college try on another government retirement program. Here’s more from ValueWalk.com:
In short, SAVE UP mandates certain employers and businesses in the United States, including many small businesses, to start contributing a fixed amount of money per employee into a brand new national retirement fund.
Based on the contribution requirements and the average wage in the United States (about $50,000 annually), the bill is slapping a 2% wage tax on employers.
Funny thing, employers are already paying 6.2% to Social Security.
So an additional 2% tax effectively constitutes a 32% proportional increase.
Social Security is failing and will be unable to keep its promises to taxpayers in the next decade.
So there’s a pretty convincing track record suggesting that government-managed retirement funds are a very bad idea
Here’s an updated graph on Social Security and all of its financial glory