From: Ron Gebhardtsbauer <Gebhardtsbauer@actuary.org>
Subject: RE: Question for Ron Gebhardtsbauer
Contributor: PANELIST: Ron Gebhardtsbauer
Lots of good ideas here. As you noted, your suggestion is a temporary "add on". I assume you are suggesting that additional money goes to the Personal Accounts. However, if the funds you were depending on for interest income are in personal accounts, they will eventually be paid out to their owners over their lifetimes. So eventually that money would no longer be around. I think you would need to continue your add on forever if it goes to individual accounts (if I'm understanding you correctly).
To modify your idea a little, the add on money could go to Social Security. Then it would be preserved for everyone. Could it be temporary then? I don't think so, unless we stop living longer and longer, which I don't think will happen. Eventually we have to index the retirement age to life spans, or we have to index the contriubtion to life spans.
