Quote:
Originally Posted by robot_parade
That's a fair point of view. So, you just got elected King, and got rid of social security. Now, what do you, as King, do about the many people who bet on the market wrong, or for whatever reason didn't save up enough for their own retirement? That was the situation before social security. Humanity has gotten no wiser since then, so that will be the situation afterwards. Will you wash your hands of them? Put them on the government dole?
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You start with financial education and money management in school, something which is very much lacking anyway. You teach people they are responsible for themselves, and that Joe down the street isn't responsible for them. Maybe restrict the eligible investments into a set of funds which are regarded as safe investments by a broad base group of economists. Maybe start new hires with a default savings plan, which individuals can change if they wish. That's what my company does. Prohibit people from early withdrawals or borrowing against their 401K.
No system is perfect. In the current system, if I die a year after starting retirement, the money I paid into my retirement fund is lost. How is the government confiscating approximately 12% of my income fair?