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TreasureKY -> RE: A Solution.... (1/25/2011 6:28:09 PM)
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Firm and I were discussing this a bit as we were getting ready to go to dance this evening...
Maybe... just maybe this might be a more viable solution if some slight changes were made:
1) Raise the age to 60 years old (there are approximately 15,240,000 workers aged 60 and over in the workforce);
2) Change the monetary offer to $100,000 for the first 12 months of retirement, with an annual payment of $40,000 until they reach the age of 70;
3) Individuals currently age 70 or above and still in the workforce (approximately 1,906,000) would receive a one time payment of $150,000;
4) Proceeds would be free from Federal income tax but would still be subject to State income tax and FICA withholding; and
5) Beneficiaries would have to relinquish all Social Security benefits until they reach 70 years of age.
The requirement of purchasing an American auto and home would help the economy, provided the industries could handle that kind of business influx. The time period for compliance would likely need to be extended to within five years of initial payment... particularly for the vehicle requirement.
Of course, you'd have to find some way to address making sure that companies fill those vacated positions rather than just use the opportunity to downsize.
You'd also have to consider that this could not be an ongoing offer... it would have to be limited to a one-time opportunity during a 12 month period. Then, you'd have to contend with discontent by younger individuals who missed out on a "cushy" government funded retirement. You'd be creating a new class of senior "haves".
Still, I'm not sure it would be workable. [sm=dunno.gif] Perhaps someone with the time and inclination to crunch the numbers will check it out.
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