RE: Social security as an intergenerational concern

[Lisa Furia <lfuria@earthlink.net>]

Mr. Rock, at 32, I suppose you could slap me somewhere in between the Boomers and Gen X. Your posting brings up excellent points.

You describe the 3 legged stool's conceptual limitations in the current economic environment we enjoy and I believe support the notion that the foundational beliefs underpinning the structure of SS need to be reexamined and perhaps fundamentally changed.

First, most job creation these days is due to small businesses. These businesses typically are unable to offer rich benefits - either health or retirement - to their employees. I do not have a single peer who has a retirement account in the traditional sense - most of us have 401Ks from previous or current employers - the employer contribution stops after you leave that job. Many of my clients - Fortune 100 companies - offer health benefits to their retirees and limited pensions, if any at all. So, it seems the idea of private retirement plans supported by industry/employers is a limited one, indeed a shorter leg given to some rocking.

Second, many younger people have opted for self-employment and other forms of entrepreneurship if they are lucky enough to be educated and business savvy. Again, this creativity is clearly fuelling today's economic boom, but, the requirement any new business demands of capital investment makes saving for retirement very challenging. Other young people simply have a hard enough time making ends meet - living paycheck to paycheck is not just a problem afflicting the poor. Rents in major cities like San Francisco, NY, Boston, LA, etc. are higher than many people's mortgages. Five of my friends recently did the math and found that the additional amount of money they bring home with both parents working after paying for day care is negligible - in fact, detrimental as in some cases it puts them into a higher tax liablility situation. Many have opted for one income, and cutting back on expenses. Yet, diapers, food, transportation, saving for college tuition & health care and taxes must still be paid. When all is said and done, there just isn't a lot to be saved. Hence, the second leg is even shorter than the first.

Finally, most everyone in my circle of friends and acquaintances assumes we will not have much in the way of anything to rely upon in terms of governmental assistance from SS. Indeed, we all expect to wind up paying much more in terms of payroll taxes to support our parents and grandparents. If that happens, how will we educate our children? Many of us are facing the reality that we will not do even as well as our parents did, let alone better than they accomplished, even though we are better educated and have greater technological resources.

I honestly don't see how the system can be sustained in its present form. The fundamentals - benefits, access requirements, purpose, etc. - all need to be thoroughly assessed and, my guess is, redefined.

Lisa