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-- Christian -- on Social Security can get this.
About a quarter of married couples and just under half of single retirees.
Rely on Social Security for 90%.
Or more of their income.
But according to an analysis by the Associated Press -- the first generation.
That put more into Social Security then we will ever get back we retire with me now is David certain -- legislative policy.
ERP thank you so much for guest tonight David we appreciate your time.
Thanks for having me.
So if I ever look at -- whole report a lot of people have been poring through this takes a lot of the numbers are staggering what got me was that a married couple retiring last year.
Earned an average lifetime wages are based on their wages they paid in about 600000.
Dollars in that Social Security 598000.
They can expect to collect 556000.
And benefits so -- that officially crossed that threshold.
Where people who are retiring right now paid in more.
Than they ever hope to get back out of that number of 600000.
Dollars is really staggering to a lot of people that are retiring they're saying wow like it all that in.
Could I have done a better job investing that money to myself or rice -- respond.
Well I think does it just hypothetical based on certain people and really what you're buying -- security is something different which is your buying.
Lifetime inflation protected guaranteed income so there's no market risk and you don't have to worry about -- living -- money.
And that's something that this generation -- future generations will be have been meeting count on.
What -- it's not inflation protected at all if you look at that stat I mean that was the average married couple last year both spouses earned average lifetime wages -- this is the Associated Press they are not buys they went through it just looked at sort of the basic averages.
It's it's especially not protected for inflation.
Mean it's the same as if you had you know take the money at the ATM and putting your house and not -- anything with and I mean Africa to return we're looking -- While talking about you're protected from inflation when you retire because no matter what the inflation rate is -- have a cost of living adjustment so it make sure that you don't fall behind.
And remember what -- securities giving you was is guaranteed basic protection.
Meaning you'll have a certain standard of living it won't go below that and you can never outlive it and that's not something you can get from any other retirement plan right now.
Okay I disagree with you on inflation -- -- basis I think we're talking about two different things but let's move on to this guarantee about how you're gonna get it back.
Because that is something I am concerned about myself.
A lot of people have called Social Security Ponzi scheme because basically people pay and there is no trust fund as we all thought there was it some time in its predicated on.
More people paying in -- taking money out -- about to cross the threshold there as well.
The number of people collecting Social Security's expected to doubled from 56 million now to 91 million in 2035.
We're gonna have too many people taking money out so it it's not guarantee I'm afraid.
-- that the benefits office guarantee but you are right in the long term we do have a challenge because we have more people who are living longer and Social Security like any pensions.
Scheme is based on how much money you put in.
So much money get out so because people living longer we want to keep those benefits up.
You'll need to make adjustments to the system.
But do you -- -- that maybe there's a better way.
Well I don't think there's a better way right now -- we've just seen what happened in the last generation we've seen.
-- pensions and stock market that's been very volatile we've seen home values dropping we've seen savings rates -- very low levels.
And what we see from this generation who thirty years ago.
Didn't think they -- gonna get Social Security thought they're gonna have other savings and pensions -- are now as Carolina -- security is as a let's see -- pretty I.
The next script that doesn't expect Social Security to be there doesn't expect to have a pension I'm saving for myself.
So it is there an option may be where we could have a hybrid system work where people like myself maybe I pay into it because I want the safety net there I want to support people.
Who -- retiring now and I know that what I'm paying in.
I will never see myself.
But maybe -- pay a lower rate and I say for myself somewhere else what do you think of a hybrid solution like that.
Well the reality is we do have a hybrid system today because -- securities only providing a base of income and we have all these investment alternatives.
401K plans individual retirement accounts that people need to contribute to an addition to sell securities.
You can't simply subs -- one for the other.
If you're gonna have an adequate standard of living you really do need -- So we need a strong Social Security system as a base and then you do need to save and invest on top that the higher as a -- in case we strongly encourage that.
But you can't replace one for the other you're going to need about.
David do you appreciate when people say Social Security's a Ponzi scheme that they compare to what happened with Bernie Madoff.
That you -- it's predicated on people paying in just to pay money up to the older generation DC to similarities.
Well absolutely not because that was a criminal enterprise and Social Security has its own.
-- dedicated source of revenue it hasn't missed a payment 75 plus years.
People are guaranteed to get -- security in the future the only question is what adjustments we make to make sure that people can get -- fully promised benefits.
I guess they're dedicated source of -- -- lot demanding -- pay in David thanks for joining us tonight we appreciate your time.