Index 
To: letters@suntimes.com From: Scott Sinnock ssinnock@netzero.com, 4:50pm, May 31, 2012 Subject: Pensions Several recent letters and columns bemoan the possibility of reduced or even steady pensions, even those letters or columns claiming reduction or at least "holding the line" on pensions is necessary. It seems we all accept the idea that retirement and pensions are an expectable privilege of modern living, if not a human right. This is a VERY new idea. Many letters have claimed (to paraphrase) "I worked hard all my life and I deserve a living pension in my retirement" (usually using the noun "we" rather than "I" to indicate it is not selfishness talking but "common decency"). Where did such an extreme idea come from? If pensions were individual accounts of reinvested interest and dividends earned on actual individual contributions, such pensions would be OK, I guess, perhaps even if forced. But when they run out?, so be it, which most would do quickly with retirement "withdrawals" that provide "a decent living". But that's not the way it works, and we all know it. If I live to be 85, a reasonable expe ctation today, and COLA's keep pace with inflation, a doubtful assumption given today's environment, I will draw about ten times what I put into Social Security, plus interest. Who pays that difference? The young. Today's pensions, including social security, are "pay as you go" arrangements. The young pay, through taxes, or as social security calls them, "contributions", to support the old, as they withdraw "benefits" from the general fund. Bookkeeping tricks are abundant that try to hide the fact that taxes on the young are paying for the lucrative retirement benefits (and medical benefits too, by the way) for the old. This is going to become increasingly clear as the wave of baby boomers surges, of which I am one of the first of this huge rising tsunami. Riots in Greece may be a harbringer of things to come throughout the "social democracies" that have promised 80 or even 90 years of comfortable living for 20 or 30 years of contributing work and 10 to 20 years of training, also paid by taxes. Amazing idea. Thank you world, for I may be a member of the only generation that will benefit from this crazy experimental idea. Families used to take care of the old, most of them at least, and we may return to that sensible solution, especially when the young realize how they are being duped. They, we. may then realize that listening to granny bitch (complain) about our sagging pants is better (read much less expensive) than paying for her own apartment and nursing care when a spare bedroom is available down the hall. Scott Sinnock 205 West Todd Avenue, Apt 201 Woodstock, IL 60098 815-206-0634 ssinnock@netzero.com |