Five Reasons to Expand Social Security

Although the Social Securityprogram recently turned 78, there is still a need to preserve and expand theprogram.  Here are five reasons why:

1. Social Security is the only safety net for millionsof Americans.  With half of Americanssaving less than $10,000 for retirement, Social Security may be the differencebetween paying bills and poverty.
2. Social Security is currently the onlygovernment-sponsored inflation-adjusted lifetime retirement payment.  And it’s benefits will be cut by 2033 unlessits fiscal situation is somehow bolstered. Sen. Tom Harkin has proposed to do this by raising cost-of-livingpayments.
3. Social Security is a bargain.  The average stock mutual fund hasadministrative expenses of 0.77% and most variable annuities are doublethat.  Social Security expenses are only0.5%, and Social Security contributions don’t come with sales charges, mutualfund revenue sharing, or 12(b)1 fees.
4. Social Security survivorship benefits and disabilitycoverage are bargains when compared with private policies.
5. Social Security needs to grow because it is the onlyguaranteed program not subject to market forces, middlemen fees, or companybankruptcies.

See JohnWasik, Five Reasons Why Social SecurityRetirement Program Needs to Live Long and Prosper, Forbes, Aug. 14, 2013.