Quote:
Originally Posted by Barefootsies
True dat fine sire on all accounts (i.e. paying people for life, free health benefits for life, job for life, etc.).
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What would you replace it with.
The options, at least to me, are to either have a bulk dollar amount a person has in an account and can draw from IE your pension is worth X dollars and you decide how you want to spend it. If you want to sit it in an interest bearing account and draw $2K a month on it for 25 years you can. If you want to pull it all out and spend it at once you can. Or you give them a set amount per month/year for a set amount of time IE you will get $4K per month for 15 years.
At least this way a person knows right from the start how much their pension is going to be worth to them. But you also have to decide who to start this with. It is unfair to tell a guy who has worked for 20 years and is a few years from retiring that his pension is going to end up being much less than he thought it would be.
As for healthcare, again what would you suggest? Most older people have some kind of health condition. Getting private insurance on the market will be nearly impossible for them because even if they are healthy the cost of the policy will be through the roof. This means that they likely will end up on Medicare. If the person is a public employee then the government pays for their healthcare one way or another. If it is a private company, if they don't pay for the healthcare the government ends up paying for it.