It seems every time the Social Security system appears to be in trouble, lawmakers say the solution is to raise the Social Security retirement age. My full retirement age is now 67. It’s not fair to the younger generation to have to make sacrifices for the baby boomer generation, which has an unusually large population of people compared to other generations. If lawmakers are going to raise the Social Security age again, I want a tax break in the former of fewer Social Security taxes withheld from my paycheck. According to a recent article by The Atlantic, rich people live longer than poor people. Raising the retirement age hurts poor people who need the benefits most when they are still alive. Raising the retirement age now will also hurt Generation X and younger generations as opposed to the boomers who have already retired or are about to do so. Social security should be reserved for the baby boomers in the most dire financial situations, while other retirees take massive cuts.
Living a decade longer
According to research cited by The Atlantic, a 55-year old wealthy person may expect to live 10 years longer than a woman who is the same age, but poor. While some speculate that poor people may have bad habits that shorten their lives, it’s more likely they have inadequate health care. The younger generations now have to pay an “individual shared responsibility payment if they don’t sign up for health care, which is essentially forcing them to help the aging population of baby boomers that didn’t save for their health care needs.
Transitioning to a better system
As boomers retire and cause the Social Security and health care system to collapse, it’s a good time to implement an alternative retirement savings plan. I think people should be able to opt out of paying up to $5,000 a year in Social Security taxes if they allow the money to be automatically deposited in a Roth IRA in their name. Even if it was a taxable IRA account, people would have the financial security of knowing their retirement money isn’t going to disappear. As it stands, younger people will probably receive benefits reduced by as much as 25 percent due to shortfalls.
Instead of raising the retirement age or increasing taxes to “save” the Social Security system, I think baby boomers who are rich should voluntarily forgo receiving their benefits. On top of that, people should be able to keep more of their paycheck so they can contribute to an individual retirement plan. It makes no sense to force people into an obsolete insurance program for old people who live longer than they were supposed to live. After paying health care insurance and Social Security, I receive a paycheck that is half of what it could be. If they are going to raise the Social Security age on the younger generations, then current retirees should accept a cut of 30 percent now to their benefits.
More from this contributor:
Why Rich People Feel Hated
The Un-Baby Boom Will Affect Social Security Later
Becoming a Roth IRA Millionaire