The US Social Security program is intended to provide a safety net protecting American workers and their families in the event of retirement, disability, and early death. Moving Social Security benefits into private accounts is one proposal to prevent Social Security's predicted future financial shortfall. Privatization of Social Security would allow workers to control their own retirement money through personal investment accounts.Supporters of private accounts contend that retirees would have the freedom to invest their retirement money in the stock market as they wish, theoretically earning higher returns than with government-invested funds.Critics of privatizing Social Security argue that investing retirement money is complicated and risky because individuals can lose their retirement safety net through bad decisions.Since Social Security is an entitlement program and Congress can change the rules regarding benefit eligibility at any time, workers paying into the Social Security system do not have a right to receive Social Security benefits.
A good thing is:
When Social Security began in 1935, the contributions of 17 workers paid for the benefits of one retiree. In 2035 the estimated ratio will be 2.1 workers per beneficiary. Allowing individuals to contribute to their own private accounts may reduce future loss of money from fewer worker contributions.
A bad thing is:
Moving Social Security into private accounts would cause substantial reductions in traditional Social Security benefits. Privatization would, over the next 47 years, reduce benefit levels by as much as 44% below 2005 levels.
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