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Social Security

Issue
 
   Despite the intent to aid the elderly, the Social Security program was improperly handled over the years and will be unable to pay its debts in the near future. The primary reason for this is that the taxes collected for the program was spent on other projects since its inception, which is fraudulent behavior, and why the retirement program is not properly funded for the future.
Solution

   The tax for Social Security is currently 12.4%, where individuals and businesses each pay their share of half that amount. Participation is mandatory.

   From a legal perspective, participation should be voluntary but doing so may collapse the system since there isn't a guarantee that enough funds will be collected for the program. So, there isn't an easy way to resolve this situation.

   There are four basic options to consider (none of which are without their drawbacks):

        Option A: (end Social Security in full as law enforcement would do with any pyramid scheme)
            Businesses no longer pay into the system (expect higher raises, more jobs, etc.)
            Better for younger citizens to save for retirement (+6.2% in additional savings)
            No monthly income for current retirees
            High death rate of elderly due to lack of savings (median net worth for 65+ yr old is $410,000)

        Option B: (end individual contributions, businesses continue to pay their portion)
            Better for younger citizens to save for retirement (+6.2% in additional savings)
            Retirees receive half monthly benefits (from average $1,980 to $990/mo)
            Moderate death rate of elderly due to lack of savings (poverty/low income hit the hardest)

        Option C: (continue Social Security "as is" with the caveat that taxes will increase in the near future)
            Younger citizens will have less saved for retirement (forced to participate)
            Retirees receive full benefits
            Low death rate for retirees due to lack of savings
            High death rate for younger generations (savings rate: 4.6% x $66,622 avg x 45 yrs = $137,907 retire)
            Forced participation into system (violation of civil rights, may be challenged, no guarantee for future)

        Option D: (end individual contributions, businesses pay full Social Security tax)
            Best case scenario for younger citizens (+6.2% in additional savings plus full retirement benefits)
            Retirees receive full benefits
            Low death rate due to lack of personal savings for any age group
            High probability of continuing into the future since only businesses pay into program
            High corporate tax rate to pay the extra $650 billion/yr (may be impractical)
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