be calculated at the time of retirement, thus alleviating the dilemma of a low average rate .
of return. For example, if I were working for 30 years and paid Social Security taxes .
every year, I would be very upset if I realized that by the time I retired, I wasn't entitled .
to as much Social Security money that I had anticipated due to the lowly 1.2 percent .
average rate of return. On the other hand, under the new bill, I would essentially collect .
on the full amount that I had paid in throughout my career after calculating the present .
value. This seems like a "fairer" way because workers will reap what they sow. People .
would then have more faith in Social Security thus increasing their incentives to work .
longer and harder. Many politicians want workers to have faith that someone else will .
pay enough taxes to pay off their benefits after retirement instead of letting them invest in .
their own futures with private "untouchable" accounts. In 2001, Bush ordered a .
presidential commission to come up with a plan to create individually controlled, .
voluntary personal retirement accounts to enhance Social Security, which is very similar .
to this section of the bill. Several countries including Mexico, Chile, Britain and .
Australia have successfully made the transition from their failed Social Security systems .
to healthy systems based on individual retirement accounts. This would help "prop up" .
the Social Security system because people would be less inclined to depend solely on the .
government for pay off. Since the elimination of the other criteria would only ensure the .
reception of Social Security payments as long as the recipient was still living, the deficit .
incurred by IOUs would slightly decrease. .
As of now, a person is required to be 62 years of age to collect on Social Security .
payments. For two-thirds of Americans aged 65 or older, a Social Security check is their .
top source of income and one in five of them rely solely on that payment.
