Social Security benefits shouldn’t be on chopping block

letters

January 04, 2012

PERHAPS EDWARD L. Glaeser was referring to the pensions of members of Congress when he recommended less government spending on retirement pensions (“The elections predictor,’’ Op-ed, Dec. 30), but Social Security was more likely his target. If one were to review basic facts about Social Security, he or she would find that the average yearly pension is a mere $14,124, but nevertheless the major source of income for most retired Americans. It is virtually the only income for about one-third of retired Americans. Reduced spending on Social Security pensions is simply not a humane or wise economic option, given our consumer spending-based economy.

Glaeser may think that even more of Americans’ retirement contributions should be directed to the financial services industry than to Social Security. In another recent column he reported that the Chilean government’s retirement plan consists of forcing workers to set up pension accounts with private financial service companies. He mentioned, by the way, that these companies charge high management fees.

Americans need retirement contributions and income that are protected from the financial services industry. As we have seen repeatedly, the financial services industry takes too much risk, charges excessive fees, and is highly prone to fraud.

Saralynn Allaire

Chestnut Hill