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THANK YOU FOR JOINING US- YOUR VIEW OF
SOCIAL SECURITY IS LIKELY TO BE LARGELY
DEPENDENT ON HOW FAR AWAY YOU ARE FROM
COLLECTING BENEFITS –
POLLS SHOW THAT YOUNGER FOLKS FAVOR
INVESTING SOME SOCIAL SECURITY DOLLARS IN THE
STOCK MARKET – THE SAME POLLS SHOW OLDER
FOLKS NOT WANTING TO TAKE THAT KIND OF RISK
– EITHER WAY – EXPERTS ALL AGREE THE
SYSTEM NEEDS ATTENTION-
((***SOT***))
>>Mike Jones/Certified Financial
Advisor:– "I think that there have to
be changes made. The demographics that are
pervasive in this country with respect to the
baby boomers and the echo boomers – just
dictate that there have to be changes made in
the system"
(GW) INDEED – IF THE RETIREMENT SYSTEM IS
LEFT AS IT STANDS NOW AND IS NOT ADJUSTED –
IT WILL RUN OUT OF MONEY IN THE YEAR 2034
GW) TO INVEST OR NOT TO INVEST --- THAT’S
NOT THE QUESTION IN THE MINDS OF THE MAJOR
PRESDENTIAL CANDIDATES – BOTH AL GORE AND
GEORGE W. BUSH WANT TO INVEST IN THE STOCK
MARKET – BUT THE PLANS ARE VERY DIFFERENT
– AND NOT VERY CLEAR AT THIS POINT – HERE’S
WHAT THE CAMPAIGNS ARE SAYING:
REPUBLICAN GEORGE W. BUSH’S IS ADVOCATING
A VOLUNTARY PLAN -THAT WOULD ALLOW ANYONE WHO
WANTED – TO DIVERT A PORTION OF THEIR SOCIAL
SECURITY CONTRIBUTIONS INTO A PERSONAL
RETIREMENT ACCOUNT – PERHAPS CHOOSING
BETWEEN A NUMBER OF DIVERSIFIED PORTFOLIOS –
MR. BUSH BELIEVES THE PRIVATE INVESTMENTS
WOULD GROW FASTER THAN SOCIAL SECURITY
INVESTMENTS – IT WOULD NEED NO NEW FEDERAL
DOLLARSS ---DEMOCRAT AL GORE COUNTERS WITH A
RETIRMENT SAVINGS PLAN – TAX FREE PERSONAL
SAVINGS ACCOUNTS SIMILAR TO 401-K PLANS –
THAT WOULD BUILD UP TO $200,000 DOLLARS -
UNDER GORE’S PLAN – THE GOVERNMENT WOULD
KICK IN SOME MATCHING FUNDS FOR THOSE WHO SAVE
– THE PLAN WOULD USE NOT DIVERT ANY MONEY
FROM SOCIAL SECURITY – THE MATCHING DOLLARS
WOULD HAVE TO BE BUDGETED FOR
(GW) TODAY - THERE ARE ABOUT
THREE-AND-A-HALF PERSONS WORKING FOR EVERY
PERSON ON SOCIAL SECURITY – IN 1935 WHEN THE
SYSTEM WAS CREATED – THERE WERE 41 PEOPLE
WORKING FOR EVERY PERSON ON SOCIAL SECURITY
– WHAT A DIFFERENCE A GENERATION MAKES –
AND IF THERE EVER WAS AN ISSUE THAT THE
GENERATIONS FEEL DIFFERENTLY ABOUT – IT’S
SOCIAL SECURITY – NEED TO KNOW’S MATT
CUMMINGS TALK TO TWO FOLKS SEPARATED BY 50
YEARS
"The Generation Gap"
Produced by: Matt Cummings
REPORTER: THIS IS JACK MURPHY. HE’S 68
YEARS OLD.
REPORTER: THIS IS DALE MITCHELL. HE’S 18.
Mitchell (on the phone) "Chris? Hey
what’s up? What are you doing? Yeah? Just
hanging out?"
REPORTER: DALE JUST GRADUATED FROM EDISON
TECH AND IS ABOUT TO ENTER THE WORKFORCE,
WHILE JACK IS SEMI-RETIRED. THEIR WORLDS ARE
DIFFERENT, BUT THEY HAVE ONE THING IN COMMON.
BOTH ARE CONCERNED ABOUT THE STABILITY OF THE
SOCIAL SECURITY PROGRAM.
Murphy: "Let me give you the senior
perspective first. For a lot of them that’s
really a safety net for them. In many cases
the bulk of what they’re receiving on a
monthly basis."
Mitchell: "I’m more like well it
better be there you know. Cause it’s like
every week, oh this much money is taken out of
my paycheck. So it’s just like you know the
teenager’s future better be doing the same
thing for me."
REPORTER: MITCHELL’S CONCERNED ENOUGH
THAT HE ATTENDED A RECENT VOICE OF THE VOTER
MEETING WITH U.S. SENATE CANDIDATE HILLARY
CLINTON AND RAISED HIS CONCERNS TO HER POINT
BLANK.
Mitchell: "I was wondering, what steps
if any are you going to take to make sure that
Social Security is around for the younger
generations when they come of age?"
REPORTER: FOR MURPHY, SOCIAL SECURITY IS
MORE THAN JUST A CAMPAIGN ISSUE. IT’S A
QUALITY OF LIFE ISSUE.
Jack (12:51) Probably, maybe 40-45 percent
of our adjusted gross income is from social
security.
REPORTER: THAT AND THE MONEY MURPHY AND HIS
WIFE INVESTED IN ANNUITIES IS THEIR RETIREMENT
NESTEGG. AND THAT SITS OK WITH HIM.
Jack (6:32) I think social security really
is a well-managed system. It’s been around
for over sixty years. It’s got a good
delivery service. The checks are there for the
people. >>Butt to (25:35) I wouldn’t
be surprised if I’ve gotten back, or in the
next few years I’ll get all the money back
that I ever paid into that. And probably then
some.
REPORTER: AND HE’S RIGHT. BEING IN GOOD
HEALTH, MURPHY MAY LIVE LONG ENOUGH TO SEE HIS
FULL RETURN. HOWEVER, ACCORDING TO THE CONCORD
COALITION’S REFPORT FOR COGRESS ON SOCIAL
SECURITY, IF MURPHY RETIRED TODAY, HE’D HAVE
TO LIVE UNTIL HE’S 90 TO SEE ALL THE MONEY
HE PAID INTO THE SYSTEM. AND ACCORDING TO THE
REPORT, MITCHELL WILL HAVE TO LIVE EVEN LONGER
TO GET HIS FULL RETURN. THE CRS CHART ENDS AT
THE YEAR 2020, WHERE PEOPLE WHO RETIRE THEN
WILL HAVE TO LIVE UNTIL THEY’RE AT LEAST
103. AND THAT DOESN’T SIT WELL WITH
MITCHELL.
Mitchell: "You know, every week this
much money or this much money. You know. It’s
like, hmmm. I really want it there. Even if I
don’t need it it’s still my money."
REPORTER: AND HE’S RIGHT ALSO.
REPORTER: MITCHELL WANTS A CAREER IN
AVAIATION AND AFTER A SEMESTER AT MCC, IS
PLANNING ON JOINING THE ARMY TO GET IT. HE
HOPES HIS DREAMS OF FLYING HELICOPTERS WILL
PROVIDE A GOOD SALARY AND ALLOW HIM TO SAVE
FOR RETIREMENT. HE SAYS HE SUPPORTS RETIREES
GETTING THEIR FULL BENEFITS, SAYING OLDER
GENERATIONS WORKED HARD, PAID INTO THE SYSTEM
AND NOW IT’S TIME TO COLLECT. BUT HE
BELIEVES THE MONEY HE CONTRIBUTES NOW SHOULD
ENTITLE HIM TO BENEFITS LATER.
Mitchell: " So no matter how you put
it, I worked for it and sweated for it. So I
think I deserve it."
Murphy: "That is a genuine concern of
young people. I’m paying more into this. OK,
maybe I should get a greater benefit. And I
think that’s where their argument should
come from. So if I was in their place, like I
tell my children, I say OK, what do you think
of privatization?"
STANDUP: PRIVATIZATION IS A SOLUTION BEING
PROPOSED BY PRESIDENTIAL CANDIDATE GEORGE W.
BUSH TO SAVE SOCIAL SECURITY. HIS PLAN WOULD
TAKE TWO TO THREE PERCENT OF YOUR SOCIAL
SECURITY CONTRIBUTIONS AND INVEST THEM IN WALL
STREET.
Murphy: "That’s kind of my answer to
young people like yourself. I think there is
certainly room certainly to modify the system
without hurting people who are on fixed
payments right now."
Mitchell: "I’m not very fond of
people putting their money into the stock
market. especially if they’re dependent on
it. You know. But if it’s just like a very
small portion, you know, then I don’t see
anything wrong with that."
REPORTER: DEMOCRATS HAVE A PLAN TOO. AL
GORE’S PLAN CALLS FOR THE FEDERAL GOVERNMENT
TO ESTABLISH PERSON SAVINGS ACCOUNTS SIMILAR
TO TRADITIONAL RETIREMENT PLANS. THE
GOVERNMENT WOULD CONTRIBUTE SOME MATCHING
FUNDS TO EACH ACCOUNT, JUST LIKE AN EMPLOYER
CONTRIBUTION. BUT WHLE MURPHY FAVORS PARTIAL
PRIVATIZATION, HE AND MITCHELL REMAIN
SKEPTICAL OF BOTH PLANS.
Murphy: "I don’t really see the
economic analysis being put out there that’s
really required."
Mitchell: "Well they both sound good.
But you know that’s also written on paper.
Once it actually starts going, who’s to tell
you know."
REPORTER: WHILE THE POLITICS PLAY OUT,
MURPHY IS ENJOYING HIS SOCIAL SECURITY
BENEFITS AND MITCHELL IS FOOTING THE BILL. BUT
THAT EXPENSE COMES WITH A CERTAIN AMOUNT OF
BITTERNESS.
Mitchell: "If when I grow up and it’s
not there, I’m going to feel like I’ve
been betrayed. It’s like lending a friend
money. Here’s some money. You’re going to
pay me back right. Oh yeah, yeah, yeah. I
gotcha. And then they never pay you
back."
Murphy: "It’s been around for a long
time and I think if there’s anything that’s
really sacred as a program in the government,
it’s social security. They will do whatever
they have to do to maintain stability."
(EM)
I'M ELISSA MARRA.YOU'RE WATCHING "NEED
TOKNOW."JOINING ME IN STUDIO ARE JOE
MARCHESE, PROFESSOR OFBUSINESS AND ECONOMICS
ATMONROE COMMUNITY COLLEGE.THANKS FOR BEING
HERE.AND ALSO WITH US IS KAREN
gRELLA,
WHO IS THE
ADMINISTRATIVE COORDINATOR FOR
LIFESPAN,
AN ADVOCACY AGENCY,A NON-PROFIT GROUP TO
ENHANCE THE QUALITY OF LIFE FOR PEOPLE IN THE
SECOND HALF OF LIFE. SO LET ME ASK YOU BOTH --
YOU WERE BOTH WATCHING THE STORY
SORT OF SHAKING YOUR HEADS.
HOW DO YOU ANSWER PEOPLE LIKE
DALE, VERY HEARTFELT
RESENTMENT ABOUT THE FACT THAT
HE MIGHT NOT GET IN MONEY THAT
HE THINKS BELONGS TO HIM AND
YET HE'S PAYING FOR THE
RETIREMENT OF HIS PARENTS
PROBABLY AND JACK AND OTHERS
LIKE HIM.
>> WELL, THERE'S NO DOUBT THAT
HE SHOULD BE GUARANTEED, LIKE
OTHERS HAVE, THAT HE WILL
EVENTUALLY GET SOCIAL
SECURITY.
HOWEVER, THE INTERESTING THING
IS THAT PEOPLE DON'T
UNDERSTAND THAT SOCIAL
SECURITY IS NOT A SYSTEM WHERE
YOUR MONEY IS SET ASIDE IN AN
ACCOUNT FOR YOU.
HIS MONEY IS BEING USED TO PAY
THE BENEFITS OF THOSE WHO ARE
CURRENTLY RETIRED.
IN ADDITION, SOCIAL SECURITY
IS A LARGER SYSTEM THAT
INCLUDES DISABILITY AND
SURVIVORS' BENEFITS AND SO
IT'S INEVITABLE THAT WE WON'T
GET BACK ALL WE PUT IN BECAUSE
SOME OF IT WILL BE DIVERTED TO
PEOPLE WHO ARE IN GREATER
NEED.
SO TO SOME EXTENT, THE SOCIAL
SECURITY SYSTEM IS A
REDISTRIBUTION SYSTEM AND
PEOPLE REALLY DON'T -- SHOULD
NOT EXPECT TO GET BACK ALL
THAT THEY PUT IN.
>> Elissa Marra: AND THAT WAS
THE SPIRIT OF THE ORIGINAL
PLAN.
PART OF THE LEGACY OF THE NEW
DEAL WAS THAT IT WAS SORT OF
TO TAKE CARE OF OTHERS AS WELL
AS OURSELVES.
ARE YOU HEARING THAT, KAREN,
FROM PEOPLE WHO ARE YOUR
CLIENTS AND EVEN YOUNGER
PEOPLE, IF YOU'RE DOING
OUTREACH THAT WAY, THAT THEY
UNDERSTAND IT THAT WAY?
OR IS IT AS JOE SAYS, THAT WE
DON'T UNDERSTAND -- WE THINK
OF THAT AS OUR RETIREMENT?
>> WELL, I THINK MANY PEOPLE
DON'T UNDERSTAND IT.
I THINK ABOUT MY OWN
FATHER-IN-LAW WHEN HE WAS ON
SOCIAL SECURITY.
HE KEPT TALKING ABOUT IT AS
MONEY THAT HE HAD PUT INTO THE
SOCIAL SECURITY SYSTEM, AND WE
WOULD TRY TO EXPLAIN TO HIM
PART OF IT MAY BE BUT ALSO
PEOPLE WHO ARE WORKING NOW ARE
HELPING TO PAY FOR YOUR SOCIAL
SECURITY.
AND HE REALLY DIDN'T
UNDERSTAND IT.
AND I THINK THAT IT IS
CONFUSING FOR A LOT OF PEOPLE.
BUT I ALSO LOOK AT IT SORT OF
LIKE SCHOOL TAXES.
WE WHO DON'T HAVE CHILDREN IN
PUBLIC SCHOOLS ANYMORE ARE
PAYING SCHOOL TAXES FOR THE
CHILDREN THAT HAVE COME AFTER
OUR CHILDREN.
IT'S AN INVESTMENT IN PEOPLE
AND AN INVESTMENT IN THE
FUTURE, AND IT'S A SYSTEM THAT
HELPS EVERYBODY CONTRIBUTE TO
THE WELL-BEING OF SOCIETY IN
GENERAL.
>> Elissa Marra: RIGHT NOW
SOCIAL SECURITY IS DOING ITS
JOB.
11% OF SENIORS ARE LIVING IN
POVERTY.
THAT NUMBER COULD BE HALF, IF
SOCIAL SECURITY WAS NOT
AROUND.
SO PREDICT WHAT WILL HAPPEN
WHEN THESE HUGE PAYOUTS START
GOING OUT TO PEOPLE IN THE
BABY BOOMERS.
>> WELL, IT'S RATHER
INTERESTING.
I'M VERY DISTRESSED THAT THERE
ISN'T THIS UNDERSTANDING THAT
-- WHEN PEOPLE SAY THAT THE
SOCIAL SECURITY SYSTEM IS
GOING TO GO BANKRUPT, THERE'S
A RESERVE FUND.
IN OTHER WORDS, CURRENTLY
SOCIAL SECURITY IS COLLECTING
MORE THAN THEY'RE PAYING OUT.
THAT RESERVE FUND WILL RUN OUT
SOME DAY.
THERE ARE ISSUES ON WHAT THE
TIME FRAME WILL BE, DEPENDING
ON HOW THE ECONOMY GOES IN
YOUR ASSUMPTION.
BUT IT WILL RUN OUT.
NOW TO PREVENT IT FROM RUNNING
OUT -- AND, BY THE WAY, IF IT
RAN OUT, IT WOULD SIMPLY MEAN
THAT FUTURE WORKERS WOULD HAVE
TO PAY FOR FUTURE RETIREES
DOLLAR-FOR-DOLLAR, AND THAT
WOULD MEAN A CUT IN SOCIAL
SECURITY BENEFITS; NOT THE
ELIMINATION OF BENEFITS BUT
THE REDUCTION OF BENEFITS.
AND YOU KNOW THE YOUNG PEOPLE,
THE GENTLEMAN THAT WAS ON THE
SHOW, SEEM TO THINK THAT
THEY'LL BE GONE, ZERO.
NOT TRUE.
NEVER WAS TRUE.
THEY WOULD BE REDUCED.
SO REALLY WHAT WE'RE TALKING
ABOUT, HOW DO WE DEAL WITH THE
FACT THAT THE RESERVE FUND
WILL BE COMPLETELY DEPLETED
SOMEWHERE OUT THERE IN THE
YEAR 2034, 2040, WHATEVER IT
MIGHT BE?
AND WHAT ARE WE GOING TO DO?
THAT'S WHERE THE PRESIDENTIAL
CANDIDATES COME IN.
YOU KNOW, REALLY THE SOLUTION
IS TO RAISE PAYROLL TAXES
AND/OR LENGTHEN THE AGE AT
WHICH YOU ARE ENTITLED TO FULL
BENEFITS.
BUT THAT'S SUCH A TOUGH BULLET
TO BITE THAT NO POLITICIAN
WANTS TO DEAL WITH IT.
BUT THAT'S THE SOLUTION.
IT REALLY WOULDN'T TAKE SOME
SORT OF A DRASTIC INCREASE IN
PAYROLL TAXES BUT RATHER A
MODEST ONE TO ASSURE MANY,
MANY MORE DECADES.
>> Elissa Marra: ALL OF THESE
THINGS ARE BEING DEBATED ON
CAPITOL HILL.
WHAT DO YOU HEAR?
ARE YOUR CLIENTS TALKING ABOUT
THIS OR IS IT JUST "I'M
GETTING SOME NOW," OR "I'LL BE
GETTING SOME SOON SO I'M NOT
GOING TO WORRY ABOUT IT"?
>> WELL, I THINK PROBABLY
YOUNGER PEOPLE ARE MORE
WORRIED ABOUT IT THAN THOSE IN
THEIR SECOND HALF OF LIFE,
EXCEPT FOR THOSE WHO HAVE NOT
REACHED THEIR 60s AND SO
FORTH.
I THINK PEOPLE IN THEIR 60s
MIGHT BE MORE -- MIGHT BE MORE
WILLING TO BELIEVE THAT SOCIAL
SECURITY IS GOING TO BE THERE
FOR THEM AT LEAST AS LONG AS
THEY LIVE.
I ALSO THINK THERE'S ANOTHER
FACTOR IN HERE AND THAT IS
REMOVAL OF THE CAP.
THAT HAS JUST HAPPENED,
CONGRESS AND THE PRESIDENT.
AND RIGHT NOW, EIGHT OUT OF
TEN BABY-BOOMERS -- NOW, THAT
MAY CHANGE -- THEY INTEND TO
WORK.
IT MAY NOT BE FULL-TIME.
IT MAY BE FULL-TIME; IT MAY BE
A NEW CAREER; IT MAY BE
PART-TIME.
SO SOME MAY START COLLECTING
SOCIAL SECURITY LATER.
THEY MAY MAKE THAT DECISION.
SOME MAY COLLECT IT AND THEN
STILL WORK AND THEN STILL BE
PAYING TAXES INTO THE SOCIAL
SECURITY SYSTEM, AND I DON'T
THINK ANYBODY KNOWS WHAT
IMPACT THAT WILL HAVE YET.
BUT THAT'S SOMETHING THAT WILL
HAVE TO BE FACTORED IN ONCE
THEY DO KNOW.
>> Elissa Marra: IN TERMS OF
YOUR AGENCY, ARE YOU LOOKING
AT DOING OUTREACH?
HAVE YOU TALKED TO BABY
BOOMERS, AS OPPOSED TO PEOPLE
WHO ARE 50 AND OLDER?
I MEAN, YOU HEAR THIS FROM
YOUNG PEOPLE, WHERE THE
CONCERNS ARE.
SO HOW DO YOU REACH THEM?
DO YOU TRY AND REACH YOUNG
PEOPLE WITH THESE ISSUES?
>> WELL, WE ARE, OF COURSE, AN
AGENCY THAT OUR SOLE MISSION
IS TO WORK WITH PEOPLE IN THE
SECOND HALF OF LIFE, BUT IT'S
CERTAINLY SOMETHING THAT WE
NEED TO CONSIDER SO THAT
PEOPLE UNDERSTAND, FIRST OF
ALL, WHAT SOCIAL SECURITY HAS
MEANT FOR THIS POPULATION IN
THIS COUNTRY SINCE IT WAS
INSTITUTED IN 1935 BECAUSE THE
SECURITY PART OF IT IS VERY
IMPORTANT, THAT PEOPLE BEFORE
THAT DID NOT HAVE ANY SECURITY
WHEN THEY RETIRED.
EVEN NOW, ABOUT 50% OF OLDER
WORKERS DO NOT HAVE PENSION
PLANS.
SO I THINK THAT A LOT OF
EDUCATION HAS TO GO ON,
WHETHER IT'S THROUGH OUR
AGENCY WORKING WITH OTHERS OR
THROUGH OTHER SOURCES.
>> Elissa Marra: ALL RIGHT.
WE'RE GOING TO TALK MORE ABOUT
THIS IN A FEW MINUTES AND
WE'LL TALK ABOUT THE PLANS
THAT THE CANDIDATES HAVE.
IF YOU WOULD LIKE TO
PARTICIPATE IN THIS DISCUSSION
ABOUT SOCIAL SECURITY, YOU CAN
LOG ON TO OUR WEB SITE AT
wxxi.org, CLICK ON "THE
COMMUNITY" ICON AND FOLLOW
"THE NEED TO KNOW" LINK.
((((((TALK))))))))))))
M) WE’LL TALK MORE ABOUT SOCIAL SECURITY
WITH OUR GUESTS LATER IN THE PROGRAM IF YOU
WOULD LIKE TO PARTICIPATE IN THIS DISCUSSION-
JUST LOG ONTO OUR WEBSITE—WXXI DOT ORG—CLICK
ON THE COMMUNITY ICON AND FOLLOW THE NEED TO
KNOW LINKS-
(GW) MOST OF US EQUATE SOCIAL SECURITY WITH
RETIREMENT – BUT THERE’S MUCH – MUCH
MORE TO THE SOCIAL SECURITY SYSTEM THAN THAT
– AND IT’S THE ENTIRE SYSTEM THAT’S AT
RISK – NEED TO KNOW’S JENNIFER REED HAS
MORE
"SOCIAL INSURANCE"
PRODUCED BY: JENNIFER LEE REED
>>Woerheide: "People talk about
2034- of course, they should really be talking
about 2015- the date when the Medicare fund is
projected to go under."
REP: THERE ARE ACTUALLY FOUR GOVERNMENT
PROGRAMS FUNDED UNDER SOCIAL SECURITY- WE PAY
ONE TAX- BUT THE GOVERNMENT SPLITS IT FOUR
WAYS.
>>Dr. Walter Woerheide/RIT Professor
of Accounting & Finance: "The formal
name of the program is Old Age, Survivors
Insurance, Dependents Insurance and Hospital
Insurance- So, there’s actually four
programs under the Social Security umbrella.
REP: AND THAT FOURTH PROGRAM-HOSPITAL
INSURANCE- IS SOMETHING WE ARE ALL FAMILIAR
WITH SOONER OR LATER- IT’S MEDICARE.
>>Woerheide: "I think 98-percent
of the people really don’t understand the
basic mechanics of how the Social Security tax
is computed and how the trust funds work- I
find it incredibly ironic that all the
political discussion is about the ability to
pay the retirement benefits- which is at risk
in 2034- when Fund B and the Medicare fund
(laughs) are projected to go bankrupt much
sooner and yet nobody is talking about what we
do for those- Fund B- which is the Disabilty
Income- is currently projected to go bankrupt
in 2020- and the Medicare fund is currently
projected to go bankrupt in 2015."
REP STANDUP: IT IS A "PAY AS YOU
GO" SYSTEM- WITH THE IDEA THAT EACH
GENERATION PAYS THE BENEFITS OF THE PREVIOUS
GENERATION.
BUT EACH PROGRAM IS HEADED FOR BANKRUPTCY-
PROJECTIONS FROM THE 19-99 TRUSTEE REPORT SHOW
THAT THE SURVIVORS FUND- MONEY THAT AIDS
WIDOWS AND SURVIVING CHILDREN- IS ALSO GOING
BELLY-UP IN 20-34- THE SAME YEAR AS THE
RETIREMENT FUND.
>>Mike Jones/Certified Financial
Advisor: "We can’t have a system that
is based on inner-generational transfer of
assets from the working generation to the
retired generation- that won’t work."
>>Woerheide: "If any private
company tried to set up an operation like
that- they would immediately be put out of
business by the government- as running a
fraudulent operation- so only the government
can run an inner-generational transfer
scheme."
REP: AND ALL FOUR PROGRAMS ARE RUN BY
INNER-GENERATIONAL TRANSFER.
>>REP QUESTION: "Basically, I’m
paying for my Father’s retirement?"
>>Woerheide: "Yes, Yes that’s
correct."
REP: AND I’M PAYING FOR MY FATHER’S
MEDICARE- ALONG WITH THE OTHER TWO EMERGENCY
FUNDS FOR HIS GENERATION- SURVIVOR AND
DISABILITY.
>>Jones: "Disability is probably
one of the real areas of concern for the
average worker- most people are underinsured
relative to disability."
REP: YOU DON’T SEE THE SOCIAL SECURITY
TAX DISPERSED INTO THE FOUR PROGRAMS ON YOUR
PAY STUB- THE SEVEN-POINT-SIX-FIVE PERCENT OF
YOUR SALARY COUNTS AS ONE TAX- YOUR EMPLOYER
IS MANDATED TO CONTRIBUTE ANOTHER
SEVEN-POINT-SIX-FIVE PERCENT TO SOCIAL
SECURITY- AND SINCE THE 19-30’S, THE SYSTEM
SEEMED TO BE WORKING- BUT ALONG CAME THE
PROSPEROUS BABY BOOMERS.
>>Woerheide: "The funds and the
money in those funds just grew dramatically
and unfortunately, it led Politicians at the
time to say- ‘hey, we can do great things
with this and instituted for example- cost of
living adjustments on retirement
benefits."
REP: AND THAT CONTRIBUTED TO THE CHANGE.
>>Jones: "For the average
person, I think Social Security is probably
half or less of their annual income in
retirement- however, many people live solely
on Social Security."
REP: AND PEOPLE ARE LIVING MUCH LONGER
ON SOCIAL SECURITY. WHEN THE SYSTEM FIRST
STARTED- LIFE EXPECTANCY WAS JUST 67- NOW IT’S
77 AND RISING- THANKS TO IMPROVED HEALTH CARE-
LIKE SOCIAL SECURITY’S MEDICARE- SO NOW, THE
AVERAGE PERSON GETS ANOTHER TEN YEARS TO
COLLECT BENEFITS.
>>Jones: "The problem is the
proportion of people that are working and the
proportion of people that are not working is
changing. There’s more people working now
than ever but there’s also more Retirees
than ever."
>>Woerheide: "The smaller
generation of workers is not going to be able
to support the Baby Boom."
>>REP QUESTION: "So this is
real?"
>> Woerheide: "Yeah, this is
real- And there are no win-win
situations."
>>Jones: "There’s no answers.
There’s no good answers out there- if
someone had one we would have implemented it a
long time ago- but there’s no good
ones!"
(EM) FOR THE AVERAGE WAGE EARNER – SOCIAL
SECURITY SURVIVORS BENEFITS ARE EQUIVALENT TO
HAVING A $345,000 LIFE INSURANCE POLICY – I’M
ELISSA MARRA AND YOU’RE WATCHING NEED TO
KNOW – JOINING ME IN STUDIO AGAIN ARE
JOE MARCHESE (MAR – KAYZ) A PROFESSOR OF
BUSINESS AND ECONOMICS AT MONROE COMMUNITY
COLLEGE AND KAREN GRELLA OF LIFESPAN
(((((((((TALK))))))))))))))))
(EM) MANY THANKS TO OUR GUESTS –
AND FOR YOU AT HOME- DIAL UP OUR WEBSITE AT
WWW.WXXI.ORG-
AND WE WILL LINK YOU TO SOME INFORMATIONAL WEB
SITES ON ISSUES SURROUNDING SOCIAL SECURITY.
(GW) YOU CAN ALSO JOIN A DISCUSSION GROUP
ON SOCIAL SECURITY WITH OTHER VIEWERS THROUGH
WXXI---
JUST LOG ON TO OUR SITE AT WXXI DOT ORG—AND
WEIGH IN WITH YOUR OPINIONS ON OUR DISCUSSION
BOARD—
OR CALL OUR RESPONSE LINE AT 716-258-0250.
YOU CAN ALSO READ A TRANSCRIPT OF THIS PROGRAM
ON-LINE.
THAT’S NEED TO KNOW FOR THIS WEEK—THANKS
FOR JOINING US.
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