COLUMN: Saving Social Security

Well, kind of anyway.

President Obama’s National Commission on Fiscal Responsibility and Reform has generated some ideas for fixing Social Security.

Personally, I am still decades away from being able to draw Social Security and, to be honest, I have never held any expectation of actually drawing a check. For as long as I can remember, the longterm viability of the program has been in question.

I realize some people get these checks in the mail every month, but have I ever expected to ever get one? No. The dent social security taxes make in my pay check has been all the more painful as a result.

However, the proposed changes to Social Security may mean that I do eventually get back a little of the money I have paid into the system. If I live long enough.

You see, one of the ideas being considered is to raise the retirement age to 70.

Now, I am not saying 70 is extremely old, but it is old to have to still be working to keep food on the table. Not to mention the fact that finding or keeping employment at that age will not be easy. Many professions still have mandatory retirement ages (which are much lower than 70). Those that do not are reluctant to hire people in their 40s, much less their 70s, due to the fact that it is cheaper from a benefits standpoint to hire younger workers.

I am not crazy about this idea, but, if we are to get this country out of the fiscal hole it is in, sacrifices are necessary.

So, in return for working a few years longer, all of us will actually be able to collect Social Security until we die. Which, if you are a male, will be about five years after you start collecting your checks.

If you think about it, the plan is actually quite ingenious. Tax a person for the 50 plus years they hold a job and then pay them benefits for five. How is that not a win for the government?

There are other ideas being considered though. President Obama recently warned that “modest adjustments” would be necessary to keep Social Security solvent. The modest adjustments proposed by his party include raising Social Security taxes, cutting benefits for wealthier retirees and increasing the amount of earned income subject to the tax – which is currently capped at $106,000.

Maybe their plan could work too. Or maybe, they could join forces with the Republicans and implement all of these “modest” changes.

I have to give both sides credit for trying at least. By 2014, Social Security will pay out more than it collects. By 2037, reserves will be depleted and the program will only be able to pay approximately 75 percent of promised benefits. Something has to be done.

Even though Social Security is currently solvent, it is an obligation that must be addressed as part of the overall U.S. debt. By the end of the decade, the majority of all federal tax revenue will be dedicated to interest payments on debt and payment of Medicare, Medicaid and Social Security benefits.

Can the politicians fix Social Security? I have no idea. All I know is that the United States’ debt (not including money owed to Social Security) is growing and is expected to reach a level equal to 100 percent of our gross domestic product by 2022.

Fixing Social Security is probably going to take more than some “modest adjustments,” but we really have no choice if we intend to keep this safety net in place for future retirees.

Kristi Reed is a reporter for the Barrow Journal. She can be reached at kreed@barrowjournal.com.