Social Security Option Perry Praises Pays Off, for Some

Wednesday, 14 Sep 2011 03:50 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Galveston, Texas, alternative to Social Security that GOP presidential candidate Rick Perry has praised has paid off for high earners, but those on the lower end of the pay scale have not fared as well, The Washington Post reported.

Galveston County employees ditched Social Security in the late 1970s, fearing that the program would not be around in the future. At the time, federal rules allowed them to opt out and they chose a system of personal savings accounts, the Post reported.

High earners are pulling in nearly double what Social Security would have provided but studies show those with lower income and who live longer do not fare as well. Additionally, Social Security payments increase with inflation, the Galveston plan does not, the Post reported.

“If you’re single, if you’re well off and you die within 10 years [of retirement], maybe you’ve done better,” Eric Kingson, a professor of social work at Syracuse University and a vocal critic of the Galveston alternative, told the Post. “For most people, it’s somewhere between ‘very bad’ and ‘not very good.’ ”

Galveston program backers said the plan may not be as good for those with lower income. “We did not weight it in favor of higher- or lower-income people,” Rick Gornto, the financial planner who devised the program, said according to the Post. “You put your money in, you invest it, and you get your money out.”


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Karl Rove: Obama Encourages Impeachment Talk to Raise Funds

Tuesday, 29 Jul 2014 21:13 PM

President Barack Obama is encouraging Republicans to call for his impeachment to "fatten the bank accounts of Democratic . . .

Rand Paul Will Write Another Book Before 2016 Election

Tuesday, 29 Jul 2014 21:02 PM

Kentucky Republican Sen. Rand Paul says he intends in 2015 to pound out a book - and decide whether to take a run for th . . .

Newt Gingrich: Obama Trying to Provoke GOP to Impeach Him

Tuesday, 29 Jul 2014 17:32 PM

Former House Speaker Newt Gingrich eviscerated President Barack Obama's "pathetic presidency" Tuesday, saying any execu . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved