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Rick Perry: Social Security is a “Ponzi Scheme”

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On Saturday at a speech in Ottumwa, Iowa, Gov. Rick Perry declared Social Security a scam, according to the Houston Chronicle. “It is a Ponzi scheme for these young people. The idea that they’re working and paying into Social Security today, that the current program is going to be there for them, is a lie,” Perry said. “It is a monstrous lie on this generation, and we can’t do that to them.”

Perry added that he wasn’t suggesting that the government should kill Social Security for his generation, but that serious changes needed to happen to the program so it could be viable for younger generations.  Among the changes he tossed out: raising the age of eligibility and a means test.

It appears that Perry’s controversial strategy is working.  Several polls reveal that Perry is the Republican front-runner, according to the Wall Street Journal. Still, Obama beats Perry 49% to 43%, according to a Public Policy Polling survey.

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    • Financial Mentor Site: The 4% Rule Could Cause You to Leave a Fortune on the Table or Run Out of Money Long Before You Die Published in October 24th, 2011 Posted by Rob in Community, Experts, Goons, SWRs Todd Tresidder has written a super craitle about the evolution of our understanding of how safe withdrawal rates work at his Financial Mentor site. It is called Are Safe Withdrawal Rates Really Safe?

    • I’m glad to hear Perry telling the truth about Social Security. It’s good to see a politician speak the truth without it being considered a gaffe. Although, I guess some would still consider it a gaffe.

      I ran across this interesting article that did a few calculations and it turns out that the average taxpayer would would have between $500k to $1 million at age 65 if they were allowed to keep their FICA money in a personal savings account.

      http://upstatevoice.com/rick-perry-and-the-truth-behind-the-social-security-ponzi-scheme/

      I’d much prefer to opt out and have my own personal retirement account.

    • Frog; Stay on your safe lilly pad. You were correct about the MKT.

    • A Highway Trust Fund that can’t be be used for highways because it holds US government bonds that conceal the true size of the national debt?

    • Jump Jive – Great point: Fannie was a FDR depression program that outlived it’s use (except the politicians that used it as campaign piggy bank and a place to reward their friends with plush jobs).

About Encore

  • Encore examines the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities and priorities of today’s retirees. The blog also explores news that affects retirement, from the Wall Street Journal Digital Network and around the web. Lead bloggers are reporter Catey Hill and senior editor Jeremy Olshan. Other contributors include The Wall Street Journal’s retirement columnists Glenn Ruffenach and Anne Tergesen; the Director for the Center for Retirement Research at Boston College, Alicia Munnell; and the Director of Research for Pinnacle Advisory Group, Michael Kitces, CFP.

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