Social Security as Entitlement Program - Deepstash

Social Security as Entitlement Program

The current system is an entitlement program in which everyone gets to claim a retirement pension from the state (that is, from working taxpayers), regardless of whether they’ve been industrious and thrifty. 

You are not saving for your retirement at all; you are paying for the retirement of others, and hoping that later on someone else will pay for yours and that someone will manage this system efficiently.

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The State-run “social security” programs ...
... violate your rights to plan your retirement. Your Social Security taxes pay benefits for today’s recipients, and theoretically, tomorrow’s workers’ taxes will pay for your benefits. That's very different from investing because it doesn’t encourage responsible attitudes toward saving for the future. It is also far less profitable.

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Positive and Negative Rights
  • Positive rights entail the duty of others to provide that which is being claimed.
  • Negative rights entail the duty of others to abstain from interfering with the pursuit of what is being claimed.

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The right to financial independence needs to be asserted—the right to work, exchange your labor for money, and to control the fruits of your labor

This necessarily includes the right to plan and save for your own retirement, free from coercion or interference.

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  • You do not choose whether to participate.
  • You have no say in how the money is to be invested. Even modestly performing mutual funds yield higher returns.
  • You cannot withdraw in response to poor performance and pursue a highly effective one.
  • Government insolvency is a big concern.
  • Decrease or removes the need to learn prudential savings and investment habits. The average worker cannot readily afford to pay into both the government and a private retirement plan.

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  • The right to save for one’s future is a negative right: Others must refrain from interfering with my accumulating and investing property.
  • The Current Model seem to have positive rights to a retirement pension: Someone has a duty to support me in my retirement, even if he does not wish to do so and without regard to whether I’ve been thrifty. 

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RELATED IDEAS

Why you should plan to plan ahead for retirement.
  • Getting stuck in the savings mindset. Saving should be formed as a habit. The amount saved can be increased over time.
  • Medical emergencies. With increasing age comes more health problems. Medical claims might not always suffice.
  • Inflation needs to be taken into account.
  • No state-sponsored pension plan. Not all countries have state pensions or social security benefits.
  • Fragmentation of nuclear families.  With fewer children per family, retirement should be planned without help from your family.

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  • The aging population is causing fewer contributors.
  • More people are retiring due to increased longevity.
  • Corporate collapses, such as bankruptcy of Enron negatively affect private pension plans.
  • Defined pension plans do also fail from time to time.
  • Many employers shift from defined-benefit to defined-contribution plans.

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It's a cold-war set in space, with politics aligning towards left of center. It showcases the dangers of nationalism, with great leaders ending up causing enormous damage and harm because of their being hard-core patriotic.

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