Dear Ron Johnson:
Recently you came out in favor of changes to the Social Security program that would change the payments that are automatically included in the federal budget to payments that would have to be approved by Congress each year as discretionary spending.
Discretionary spending? What seems to be forgotten here is that Social Security is my money. I’ll say that again: it is MY MONEY!!
The Social Security Act was signed in 1935 and the first taxes were withheld in 1937. The original purpose was to address the permanent problem of economic security for the elderly. Government was concerned that we would fail to save enough for retirement and instead spend on wine, women (or men) and song and squander the rest. Ironically, it appears that government has squandered the funds.
I started contributing back in 1973, a whopping $16. My employer did the same. Over the years I’ve contributed more than $150,000 as an employee. And since I have been self-employed most of the past twenty years, I have contributed almost another $100,000 as the employer. This is my money that was contributed to a mandatory fund and those funds are supposed to allow me to have a comfortable retirement. How comfortable, you say?
Let’s say that money was invested in the stock market over those past 48 years; it would have grown to over $4.1 million. That’s how much money Social Security owes me. Based on my most recent annual statement I’m eligible to collect about $40,000 per year. That means I have to live at least another 100 years to collect all that is owed me. And you call that an entitlement.
Although my employer and I have contributed over a quarter of a million dollars during my work time, you’re now telling me I need permission to use my own money that will never pay me back for all I have contributed. I know and even agree with you that the system is not sustainable. But coming to me to either pay more or take less is not the solution. Figure out where you squandered my money and get it from there.
Good luck with everything.
James J. Denora, CPA, CFP®