Tuesday, September 15, 2009

Sloan answers readers questions on his dire warnings about Social Security

Allan Sloan has an important column on Social Security in The Washington Post on Tuesday, Sept. 15, “The Readers Speak”, link here.

He answers some questions about his Fortune column this summer (Saturday’s post). He says that illegal immigrants do not hurt social security – in fact, they probably help it because they pay FICA taxes through employers and don’t receive benefits.

He thanks a reader for reinforcing one of his points, that social security still is an inter-generational social insurance plan (that’s how it started with FDR, so it’s hard to transition out, because some people who receive benefits never paid in). He also stands by raising the retirement age to 70.

What would happen to people already in the 62-69 range if that were done suddenly? (I’m 66.) We could be pressured into doing things we don’t want to have to do. Promises get broken.

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