First, way too many people are fiscally irresponsible! They would spend all their money and then die in debt.
- Old people get to be provided for in the Social Security, Medicaid and/or Medicare
- Less taxes for everyone
- The money collected is invested, and actually earns money
(If a stock is down for say 2 years, the extra money exists so don't sell it until the stock rebounds.)
- You don't have to pay 50%+ taxes
- We don't have another "great depression"
Every public debt is eventually absorbed by the taxpayers and increases taxes
If we have no social security (or whatever your country calls it) we 10x the homeless elderly who can't feed or care for themselves. Then need medical care, food, and etc. How will this be paid for?
In any modern society shooting the elderly or letting them die is totally unacceptable. So now the government still has pay for their care, and the government has to it. Where does the government get money when it needs it from, everyone, up go the taxes.
The biggest down side is the government has an ever increasing debt as it has to pay for more and more elderly. If you pay in advance you're building equity instead of paying for run-a-way debt.
Prior to the enactment of social security, in USA, we had a "great depression" because of many reasons, but including the side effects of having too many poor and homeless people.
I did research and nursing homes are $300-$400 a day. However, if you qualify(you have few assets left) for medicare they negotiate a better deal, and because its government run they have to accept it. Professional in home help $20-$30 per hour depending on the level of needs. Adult day care $50 to $80 a day depending of the level of need.
(warning this brief history isn't that brief! 54 pages!)
State Old-Age Pensions
Following the outbreak of the Great Depression, poverty among the elderly grew dramatically. The best estimates are that in 1934 over half of the elderly in America lacked sufficient income to be self-supporting. Despite this, state welfare pensions for the elderly were practically non-existent before 1930. A spurt of pension legislation was passed in the years immediately prior to passage of the Social Security Act, so that 30 states had some form of old-age pension program by 1935. However, these programs were generally inadequate and ineffective. Only about 3% of the elderly were actually receiving benefits under these states plans, and the average benefit amount was about 65 cents a day.
There were many reasons for the low participation in state-run pension systems. Many elderly were reluctant to "go on welfare." Restrictive eligibility criteria kept many poor seniors from qualifying. Some jurisdictions, while having state programs on the books, failed to actually implement them. Many of the state-passed pension laws provided for counties within the state to opt to participate in the pension program. As a result, in 1929 of the six states with operating pension laws on the books only 53 of the 264 counties eligible to adopt a pension plan actually did so. After 1929, the States began enacting laws without county options. By 1932 seventeen states had old age pension laws, although none were in the south, and 87% of the money available under these laws were expended in only three states (California, Massachusetts and New York).