Social Security retirement should be privatized?

Discussion in 'Economy' started by Supposn, Nov 13, 2011.

  1. Supposn
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    Supposn Senior Member

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    Social Security retirement should be privatized?

    It’s argued that our policy of deriving SS retirement system’s “float” earnings only from U.S. Treasury financial instruments does not sufficiently increase the funds available for SS retirement benefits. It’s been further argued that privatized accounts would in aggregate increase funds available for SS retirement distributions.

    When lesser income earners, [many if not most of whom do not have substantial equity in their homes], reach their age of retirement, their SS lifetime annuities are too often their most valuable asset.
    Similarly a great many higher income earners that never anticipated dependency upon SS also have found themselves in such conditions.

    A privatized SS account’s value upon their owners date of retirement is subject to greater risk (than an account that derives additional incomes only from U.S. Treasury’s financial instruments.
    The working poor and other lesser earners have little to gain but there’s a significant risk of these segment of our population being in aggregate driven to poverty if they retire.

    The two major purposes of the SS retirement program are
    (1) Somewhat of financial safety nets for persons who reach retirement age.
    (2) Reducing poverty among our elderly in a manner that’s net beneficial to our nation’s economy. Its estimated SS currently keeps 40% of our population age 65 or older out of poverty.

    Almost all of goals of those advocating privatized SS accounts would be achieved by reducing some limitations within our existing voluntary federal tax deferred programs. ; (to begin with, greatly reducing the accounts limited purposes or cash-out times.

    Most proponents of privatized SS accounts are disingenuous when they do not acknowledge their primary purpose of undermining if not eliminating SS retirement itself.

    Respectfully, Supposn
     

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