I understand that originally it paid much less and that for each person who collected a couple hundred paid in. today for each person that collects about three pay in - clearly unsustainable.
Reform needs to include:
An actual promise that a certain benefit level will be paid.
Voluntary enrollment.
Option to opt out based on specified rules.
Moneys not mingled with other funds.
Moneys invested at a decent rate of return.
Someone other than the government runs it because it is a conflict of interest when the gov runs it.
Could it still redistribute money? I don't see why not as long as the people who join are aware of that.
Could people who have not paid enough premiums join? That ruins the system, no.
Might it pay out higher amounts to people who want it to cover all of their retirement rather than just some of it? Sure as long as those people pay higher premiums.
Wouldn't it just be a gov backed annuity then? Yes, the rules that congress set up to make annuities fair and legal are appropriate and since they are appropriate they should be applied to SS.
