Wednesday, October 01, 2014
Motley Fool debunks common myths about Social Security
The Motley Fool has tweeted a piece “5 Huge Myths about Social Security”, link.
It debunks the idea that Social Security adds to the deficit (remember John Boehner in 2011, before the first debt ceiling crisis?). But more important, it plays down the “demographic winter” argument, saying that life expectancy, given that one has reached age 65, really hasn’t risen all that much. It also maintains that rising worker productivity helps offset the numerical loss of workers available by “head count”.
It also says that we need to come up with only 1% of Gross Domestic Product to makeup the shortfall for the next 75Years.
It’s true that Social Security provides disability benefits as well as retirement benefits. But I would disagree with the idea that it “isn’t a retirement savings plan” but an insurance plan (or welfare). I really did use if as “retirement savings”.
The URL link is here.