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As a Gen-Xer, I wasn't born yet when the Social Security Act was signed by President Roosevelt in 1935. Deep down, I don't believe there will be any Social Security when I retire in another 30 years.
I had the pleasure of hearing the brilliant Senator John McCain speak recently at a local chamber of commerce in the Tampa area. He was in town to endorse Governor Mitt Romney as the republican nominee for president.
One of the young people in the audience asked McCain whether people could ever opt out of participation in the Social Security system.
Acknowledging Social Security is a bit of a "scheme," McCain said he would like to see some of Social Security put in a "lock box" so it's there when people retire.
He was referring to the idea that Social Security money be put aside specifically for retirement funds and left untouched by government. It's what a lot of seniors assumed was happening in the first place.
McCain said the problem with Social Security is there is more money going out than coming in. "It's going broke," he said. "The sooner we realize that, the sooner we will deal with it."
McCain also pointed out that this is not the first time Social Security has been broken. President Ronald established a commission led by Alan Greenspan to reform Social Security in 1981. I was a child at that time, but when I grew older I closely followed the work of Greenspan. In my 20s, I had a chance to hear Greenspan speak in public. Because of Greenspan's work, the full retirement age was raised from 65 to 67 with the increases phased in.
Although I'd be fine without any Social Security, I know a lot of people don't plan for their futures. They would be lost and homeless without Social Security benefits.
I think of how many senior citizens I know who retired early only to find themselves living Social Security check to Social Security check. They are the same people who used to live paycheck to paycheck.
At first, I scratch my head and wonder how a person can work for 40 or more years and not have anything saved. Then I remember how many people I know with credit card debt.
It's virtually impossible to save for retirement when you are in debt. One of my older friends can't stop working because she still has credit cards to pay. Another older friend retired, but doesn't have enough money to pay her bills.
A dignified retirement to me is about having no debt, no mortgage and enough money in the bank to generate an income that matches a middle-class income.
Should my Social Security contributions be kept in a lockbox so that I'll have guaranteed income during retirement? Of course it should. I may not have been born in 1935, but I wasn't born yesterday. I don't count on the government to keep my retirement funds safe and secure. Whether it's a literal lockbox or a figurative one, I should hold the key.
I too would like to opt out of Social Security and handle my own financial future, but I know it's not a choice I'll be given.
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