Question

1) Do you believe that social security benefits will be reduced in the near future?

2) Do you believe that the current social security program is well managed?

3) What type of means tests would you recommend for social security receipts?

Answer 1

1 we do think so. Generally as countries have developed more, there has been more focus on social security. But recently politicians, political parties, arm chair Economists, bankers etc have been spitting venom against social security programme. However the main problem is that according to some estimates by fourth decade of this century the programme will not have enough funds to pay benefits when due. Without some reforms and govt support things can go against it

2 we do think that it is well managed. According to some estimates it's costs are 0.7-0.8 percent of payoffs. Private insurers charge around 3 times more fee. But yes we welcome some changes that will make it more viable and financially sound like means testing

3 income test. Even wealth may be included in broad classification of income. We can recommend also only wealth related income such as from share holdings. Assets can also be used. It may include all assets or leave some necessary assets like homes. Means test could be applied at one time or at regular intervals. It can exclude rich persons.