Social Security - retires One plan would take a portion of...


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Social Security was set up to make sure he elderly had some form of income they were to retire. To better understand how the system works you understand that it s a pay as you go system. The people that are currently retired receive their social security benefits from those who are currently working and paying their payroll taxes. However, the funding is running short and new plans are beginning to be proposed to fix the problem. The arising question is whose job it should be to decide the elderly retirement income needs. There are two basic options to fix the problem, privatization or partial government involvement. Privatization is investing in personal accounts that go toward retirement. An example of partial government involvement would be an endowment account. This possible solution would give you money at birth that would be put toward schooling, home ownership, job education, and your savings toward retirement. I believe that privatization would be best all around for today’s economy and future
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Unformatted text preview: retires. One plan would take a portion of your social security money and put it into a private account that would gain interest over time. The other portion of the money will continue to pay those who are currently retired and collecting social security. By investing in long-term stocks the return is far higher than what you would receive from social security. By personally investing you are gaining control and ownership over your money. The next idea is a personal account combined social security. A Carve-out account would allow you to privately invest a portion of your current payroll taxes. This plan allows u to keep paying those current on social security along with those that are 55 or older. Social security’s pay-as-you-go system is falling because more is being taken out of the system than being put back in. Some form of action needs to be taken to prevent a larger amount of debt....
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