Donald Trump is saying that he likes the idea of Australia’s defined contribution retirement program instead of U.S.’s defined benefits plan. Defined contribution means you have no guaranteed retirement income. Maybe you get more than a defined benefits plan. Maybe not. The risk is yours. Also, how does a defined contribution handle disability and survivor benefits? Maybe those contingencies never happen in Trumpworld. Oh, and there’s also the little problem of how we would transition from what we have now to a defined contribution plan, a problem that has no conceivable solution.
Talking about the U.S. switching to a defined contribution plan is a sure sign that you know virtually nothing about Social Security.
At least I’m talking about eye rolling comments from the President rather than the problem he has keeping his eyes open.
Most of Trumps comments are eye rolling. How can anybody take any of his comments seriously? This is another example of diverting attention from the affordability issues and the Epstein files.
ReplyDeleteThe individual that had SIX bankruptcies is giving the nation financial advice. How is our current economy doing? Splendid? 🤡 talk.
ReplyDeleteYounger people will like this idea. Because it establishes a dedicated account for each person, versus the anticipated insolvency with SSA's defined benefit program.
ReplyDeleteEye roll all you want to this idea, but we are all facing an uncomfortable future with the system unchanged. And, by the way, Democrats haven't done anything to tackle the looming funding crisis, even when they held both houses and the White House.
The current SSA system works due to the current work force paying for today’s retiree’s. Any diversion of funds would collapse the system. The trust fund is already in distress due to AI, immigration, poor economy and low birth rates. The Social Security solvency issue needs to addressed sooner than later.
DeleteAs a younger person, I certainly do not like this plan. There are a number of reasonable fixes that would extend the trust fund out 50+ years. Anytime this issue comes up, I point to the CRFB interactive reformer tool:
Deletehttps://www.crfb.org/socialsecurityreformer/
If the GOP is going to continue weakening labor rights and refusing to raise the minimum wage to a livable standard while fostering continued profiteering from health insurers and other middle-men, then a plan like Australia’s will result in an even more impoverished retirement for many than social security.
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