Subject: RE: What "values" created the existing system?
Raising the age of retirement to 70 kills off 16% more people. They pay 15.3% of their life time earnings into a system and get NOTHING!! Great, make it a lottery. If you live long enough, you might get to draw $2,500 a month for life aftering paying close to $300,000 without interst all your life. boy what a deal that is.
But wait, you state incrased life expectancy is the reason for this. Please state the life expectancy of those in 1935 at age 65 and the life expectancy of those in 1998 at 65. I would like to see just how large a difference there is or is there a difference. I think you are mistaking increased life expectancy at birth for 1935 and 1998. This happens 99% of the time. What you need to look at is how many year past age 65 are people living and not what the average life expectancy is starting at age zero.
Minor change is what you think are needed. Great I would like to see your analysis on this. Where are the numberst to support your minor changes. You also point out that 2% was the begining payroll tax and that now it is 6%. You use both employee and employer in the first and just half in the second. Consistency in analysis and assumptions are important.
One big note. The 75% of benefits payable is an average over time. This means that early on after bankruptcy, they can pay maybe more than 75%, but my analysis shows that past 2050, it can pay only 67% and most likely as low as 58%. Do not believe everything the government prints. Remember that in 1983 they predicted solvency till 2070 with the large tax hikes. A few year later it dropped to 2060, then to 2050, then to 2040 then to 2029 then to 2032 and now 2034. All of this is a short 15 year span. At least my date is still coming out about 2037. Why do I see bankruptcy 3 years after Social Security? I separate out DI from OASI. DI is projected to go broke a few years sooner than OASI.
