Costco Connection - February 2012

■INFORMEDdebate
Should you be
YES
able to opt out of
Social Security?

FEDERAL LEGISLATION RECENTLY has been introduced that would give working Americans the option of diverting their 6. 2 percent payroll tax contributions to tax-free private retirement accounts instead of traditional Social Security. Supporters say that under the current system Social Security coffers will be exhausted in a few decades, and this plan would give working Americans a better chance of building a comfortable retirement nest egg.

Opponents argue that opting out would completely destabilize Social Security, subject Americans’ retirement income to the volatility of the stock market, deplete the Social Security Trust Funds much faster and jeopardize traditional program recipients, including those who receive disability benefits. Social Security is the basic layer of financial protection that most Americans need, they insist.

What do you think?

from members: Katie Schloss St. Louis, MO

I should have the
choice to put money
in a private retirement
account. I have no
faith the government
will have funds available to
me at such time as I qualify.

Reuben Alisa Laie, HI

Social Security
benefits are being
strained and
may be on the
chopping board
for senior citizens.

Find out more about this topic on the Web:

• www.aarp.org/work/social-security/info-08-2010/social_security_75th.print.html

• http://strengthensocialsecurity.org/

• www.aflcio.org/issues/retirementsecurity/socialsecurity/

• www.dailymarkets.com/economy/2010/05/11/would-you-opt-out-of-the-social- security-system-if-you-were-able-to/

• www.yaliberty.org/posts/socialsecurity

Peggy S. Boucher Milton, VT

People can and will take the important steps to find the information needed for their future.

NO

from members: Kalyse McElveen Austin, TX

Social Security is
the only option for
a great many
Americans who do
not have the time,
resources or expertise to make
the best [financial] decisions.
Carl Sapelli
Buckingham, PA
Statistically, the
benefits of Social
Security ... cannot
be accumulated
through private
investment. Taking contribu-
tions away by opting out
will hurt the fund.