It’s time to phase out Federal Social Security.
Employees should have a Private Retirement Account set-up with a Federally Insured Bank (of the employee’s choosing) that the employee will set aside 5% or more of their income, Pre-Tax. The employer will match the employee’s monies dollar-for-dollar up to 7% and have that monies as a write-off as a company’s expense.
The employee account will not be touched by anyone (indiviual, company or government) and will follow the employee wherever they work until the age of 65. At 65 the employee and employer no longer pays into the employee’s account. The employee can then have access to the retirement account.
Federal Social Security will be phased out. Anyone currently collecting Social Security will receive their payments for life. Employees who have contributed to Social Security but aren’t yet collecting benefits will have their Social Security Account (including the employer’s portion and interest paid) divided into 120 monthly payments.
The retirement accounts will not be used to assist people with disabilities. The State Legislatures and Federal Legislature will need to set-up separate means of government support.
If a spouse passes away, the surviving spouse will be entitled to the retirement account upon the deceased’s 65th birthday. So, if a husband passes away at age 60, the surviving widow. or immediate children if both parents have passed away, would have access with the husband’s 65 birthday. Of course, if the wife has an employee retirement account and dies before the husband, the same scenario applies.
Only the amount of money withdrawn from the retirement accounts are subject to tax, and then only as ordinary income at the year’s end.