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Idea for saving Social Security

By Jennie L. Phipps · Bankrate.com
Monday, February 4, 2013
Posted: 3 pm ET

As Congress struggles with ways to manage the rising cost of Social Security without cutting payments that are vital to millions, some people are offering suggestions that sound like they might be worth a second look.

Try this on for size: Would you delay claiming Social Security -- saving the federal government money in the process -- if it meant Uncle Sam would give you a cash bonus? The bonus would be equal to the amount that your Social Security payment would increase by delayed claiming -- about 8 percent of your potential payment for every year you delay.

Economic theorists at the University of Pennsylvania Wharton School of Business, who came up with this idea, calculated that workers given the chance to receive their delayed retirement credit as a lump-sum payment would, on average, delay their retirement for a year and a half to two years. This raises the probability that people younger than 60 would work beyond the normal retirement age from 29 percent to 86 percent, and it ups the likelihood 60-year-olds would work beyond 65 from 4 percent to 49 percent.

The report says this plan is a good deal for Social Security because it continues to collect wage taxes and can delay paying a participant's benefit for however many additional years he chooses to work. It is a good retirement planning deal for recipients because it front-loads payments during the early years of retirement when most people need more money. Participants also could invest this lump sum and potentially build a bigger nest egg for their later years or leave it to their heirs.

What do you think? Would you vote for making a partial lump-sum payment a Social Security option?

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301 Comments
tom
February 09, 2013 at 6:58 pm

make govt pay all money back that they took from surplus and fine the govt..for stealing ppl money....from ss...and let american vote on this,,,,

Donna
February 09, 2013 at 6:57 pm

Yes, the funds established by working citizens have been used by congress....stolen...withour permission of the stake holders..the working americans. Used for everything but..and now the whinning about we do not have enough...they should be ashamed, but are not because they are lying crooks. So, really do you want to roll the dice and gamble you might live longer and be healthy to collect, what are you willing to gamble. You have no value in this country unless you are paying taxes from working wages. I work in an industry that serves people who need specialized treatment, and get this if you have never paid into the system some states will step up an buy you the required health insurance to pay for your treatment..and these are undocumented folks..imagine that...while folks who have worked hard all their lives..and have a little property or money are literally raped down to nothing..yes the big spend down. Do not gamble take the money and run..do not look back at your life..and say..WORKED ALL MY LIFE..AND THAT WAS NOT LIVING...IT WAS SLAVERY..TO PAY TAXES...

S.A.Hyder.Ph.D.
February 09, 2013 at 6:43 pm

Cut Congress' pay and perks by 50% to pay back the Social Security Fund. The money that they and their "ancestors" stole from the fund. Are not these present-day congress men reaping the rewards of the salary and perk increases that the earlier congress voted? Then they should also be responsible for the earlier congress' blunders and cheating. Is that not fair?

Wayne
February 09, 2013 at 6:32 pm

3 things would fix and maintain S.S. : 1-restore all "?borrowed" funds to SS. 2-bring back AMERICAN JOBS TO AMERICA 3-Put all funding of Congress' (etc) retirements into SS fund and require thes same leaches to be subject to the same rules as we commoners.

patrick bennett
February 09, 2013 at 5:50 pm

I know an easy way to fund social security. Tell congress to not buy just one new joint strike fighter. The money saved would finance social security for a long time.

J Parshall
February 09, 2013 at 5:32 pm

Glad to see that you are all on top of the SS problem. I would like to add the fact that most younger people are shocked when I tell them you also have to pay for Medicare. They are under the impression it is a freebie. On top of that they don't know that you also are required to carry a drug plan at your own expense and in most cases you need a suppliment plan. To top it off we have to pay taxes on our social security that was already taxed when we earned our pay. (thanks Mr. Clinton).

bigbob
February 09, 2013 at 5:17 pm

Why cant we the people the congress that they cannot stick there hands in ss or pensions or any other thing that is suposed to be put aside for the people,who are putting into it.Asfar as Im concerned they are stealing any way.

jerry trainor
February 09, 2013 at 5:11 pm

pu back the money that was stolen 13 trillion . it was supposed to be fixed years ago an now should have 13 trillion but was used to balance the budget .the goverment is just like madoff they should all be in jail. but they are right there is one born every day.

jonocha
February 09, 2013 at 4:43 pm

Oh Thomas your so right,it seems that all of the parties(GOP,DEM,and what ever other party was around during the 70,80,90`s)all of them suck there hands in the kitty(SSN) and took the money out and never paid it back and the interest it would of gain. we would not be in a world of _hit were in now.and No one had the Balls to say no in taking out the money.
Many people(Mostly the old) don`t know about how the (SSN) lost it`s money to this day.And some of the young people need to read up on how the(SSN)got all mess up.

Thomas
February 09, 2013 at 3:53 pm

The government should pay back all the money they borrowed from Social Security and stop giving it to people who come into this country and never worked for it. If you didn't give into it you shouldn't be able to collect it! Social security was set up for the American people not everybody else! This is the land of the free not the land of the freebies! Also why is our government feeding other countries instead of the starving in our own country? The old saying "charity begins at home" should be followed by Washington bureaucrats.