For 60 years it worked nearly flawlessly. You work hard, you save any excess earnings, invest prudently, you pay your taxes, and you pay into Social Security. Then when you retire, you have a nice pillow-cushion of savings, investment income and social security checks to fall back on.

But that’s clearly not the case anymore. The social contract is broken – and it wasn't broken by the average retiree. The average retiree held up their end of the bargain. But now, every single penny sitting in savings accounts, 401(k) plans, mutual funds, and being held in what remains of the Social Security coffers is a huge liability for the Federal Government.

Why? For a Federal Government that demands never-ending bureaucratic AND economic growth, money that just sits in a savings account or in a retirement fund could be better spent on war-machines and/or frittered away on stuff from China, Japan or Indonesia.

In a letter titled "Your Social Security Statement" the Commissioner of Social Security Michael J. Astrue wrote:

"...by 2037, the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits. We need to resolve these issues soon to make sure Social Security continues to provide a foundation of protection for future generations."

I've done the calculations, and I now pay about 7% of my income in FICA taxes, an amount I realize also includes Medicare - which is of course, matched by my employer. So, that's 14% of my potential income gone. It's more than I currently save for my own retirement.