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How Social Security Privatization Could Impact You
Although the idea is not new, there appears to be renewed enthusiasm surrounding Social Security privatization. Privatization refers to shifting from a government-managed Social Security system to a private investment model in which individuals would manage their own retirement funds rather than count on Social Security benefits in retirement.Realistically, given the number of issues that would need to be overcome, the odds of privatizing Social Security aren't great. For example, what would happen to those Americans who enter their retirement years with little to no money because their investments went belly-up, or they failed to invest at all?However, supporters continue to argue that privatization will allow American workers to enjoy higher potential returns on their investment while reducing the government's burden of overseeing such a massive program.Continue reading
Although the idea is not new, there appears to be renewed enthusiasm surrounding Social Security privatization. Privatization refers to shifting from a government-managed Social Security system to a private investment model in which individuals would manage their own retirement funds rather than count on Social Security benefits in retirement.
Realistically, given the number of issues that would need to be overcome, the odds of privatizing Social Security aren't great. For example, what would happen to those Americans who enter their retirement years with little to no money because their investments went belly-up, or they failed to invest at all?
However, supporters continue to argue that privatization will allow American workers to enjoy higher potential returns on their investment while reducing the government's burden of overseeing such a massive program.
