A Young Person's Look at Social Security

By: Jason Cunningham (2/4/2005)

  Every two weeks money comes out of my check for Social Security. This money is set aside for proposed benefits when I retire, one day in the distant future. Unfortunately some of us may collect before age 68 due to blindness, disability defined by Social Security, or by being a minor in a household eligible for benefits.

   The rhetoric from both sides, Republicans and Democrats, in my opinion seems to be lacking a young person's perspective. Some young people probably think it would be a good idea to put all of their Social Security withholding into investments that would be similar to the Federal Government's Thrift Savings Program. My criticism of the Bush Administration during the Presidential Election was the lack of transparency in regards to what percentage of  Social Security would be allowed to be put in these so-called private or personal accounts. A few of my Republican friends argued fiercely that Bush's Social Security Reform is a good idea, but none of them are able to articulate what changes would be made nor the cost of doing so.  Now let us turn to my gripe against  fellow Democrats. I am disappointed that true no alternatives  to the Bush plan have been offered, however this is my opinion. Saying that Social Security Privatization is a destructive idea is just not going to cut it with the American people.

   Well I have come up with a rough draft of questions and things to consider in regard to the Social Security debate. First of all, those under the age of thirty-five including myself must not be promised Social Security in its current state. One, most young people understand they need to save for their own retirement, because we need more money to enjoy our retirement years. Therefore we should take advantage of our 401K, IRAs, and other available saving vehicles. Second, the most important way to help save Social Security to make sure more young people are working. Every dollar contributed to Social Security alleviates the strain that will occur when it is projected that more money will come out of Social Security than goes in the plan in approximately 14 years. Third, we need to finally get to the truth. If privatization does occur will there by any safeguards for the 33 1/3 % of our future Social Security at risk? I am pretty confident that private accounts will earn more than current system over the course of forty years. Yet will there be enough money in Social Security to pay for those who are currently on Social Security benefits if there is a period of three down years in the markets which could reduce personal accounts by 30%? We must remember Social Security is a social program, unlike your 401K or IRA.