Millions of workers expect to rely on Social Security after they retire. But a group of corporate CEOs wants to cut Social Security benefits by raising the retirement age to 70. That has ordinary workers furious, but what's their best response to the situation?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at proposals from the Business Roundtable and the controversy that they've raised. Dan notes that the big problem is that the CEOs proposing the cuts will themselves never have to rely on Social Security, as most of them sport sizable retirement packages of their own. One study points to CEOs at Honeywell (NYSE: HON ) , Wal-Mart (NYSE: WMT ) , General Electric (NYSE: GE ) , ExxonMobil (NYSE: XOM ) , and AT&T (NYSE: T ) as having the five biggest retirement packages among Business Roundtable members.
Even more galling, many CEOs have been instrumental in dismantling traditional pension coverage for employees, replacing it with 401(k) plans that put the onus on investors to save for retirement and invest successfully. Dan notes one response to hit back at CEOs would be to propose removing the wage cap on Social Security taxes, which would mean CEOs and other high-income earners would pay more into the system.
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