Social Security
I’m starting to think that it would be best to convert Social Security from an entitlement program to an “underfunded retirement insurance” program.
Much like we do with unemployment insurance, we pay into it hoping we will never use it. For those well above the labor class, this eventually becomes more of an exercise in Joe Biden’s tax-patriotism than true bank-and-hope “investment.” We realize that those folks employed swinging hammers and waving in the wind of volatile construction and manufacturing environments will be in more need in bad times, and those better off could very well be in a need-not apply situation anyway.
Many if not most responsible successful retirees are not even considering social security in their retirement calculations. The good planning websites pretty much tell you not to. If it’s so negligible and uncertain for you, take yourself out of the game.
Once Social Security is converted to under-savings insurance, we can basically see it as another form of welfare. And what’s a better governmental policy toward welfare than preventing people from going onto it?
So start a jobs program for retirees. You have an increasingly well-educated population retiring earlier with a longer life expectancy. Work might help out with the health insurance, reducing some burden on the system there, and who knows how much dementia and other maladies could be averted by keeping mental activity high in the sunset years.
This makes Social Security yet another income tax for those better off, but the regressiveness of the current situation has it halfway there already.