Socai Security, Should You Count on It?

Social Security, Should you count on it?

Relying on Social Security alone for retirement will get you nowhere; the program wasn’t created for it to be used as a primary retirement fund. “Social Security is not a retirement system; it is a government program that was created in the 1930s that does not reflect America’s new economy of independence, ever-changing career paths and the challenges of a global economy (FOX News, 2008.) Whether Social Security is saved by raising taxes or cutting benefits, the consumer will be hurt. If the government decides to raise taxes, your money won’t go as far, and if they cut taxes then you won’t have as much money to live on. So relying on Social Security alone for retirement is not a smart move.

Some experts believe that Social Security discourages people from creating a personal savings and looks down upon early retirement. As a result, a large percentage of people are nearly entirely dependent on the government.

Social Security discourages private savings in two ways. First, it takes money that otherwise would be invested in economically productive private activities and dumps it into the Treasury (the “trust fund” is a political fraud) for redistribution by Washington. This year about $560 billion is disappearing into Uncle Sam’s porous pocket (Bandow, 2009)

Bandow is employed by the Cato Institute, and a former Special Assistant to President Ronald Regan and an author to several books. Bandow argues that creating a government retirement system reduces the necessity for private savings. I think that he is exactly right. Why would you want to create a savings if you are already forced into contributing to Social Security, with the promise that it will be there for you when you need it. Yet you have to meet certain requirements before you can use it. And the government can change those regulations when they see fit.

Is it documented there is a direct and effect between the existence of Social Security and...