Benefits Of Privatizing The Social Security System

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The social security system was created for taking care of America’s senior citizens. The program provides old aged survivors disability insurance, retirement, and in any case of early death of the family of those who earned a living with wages salaries or to those who were self employed. But know the social security system in this country is gradually getting in serious trouble and the increase in taxes to provide a reasonable level of income for the retirement years is becoming more of a bad deal for Americans. The best way to respond to this possible problem is to privatize the social security system and make it mandatory for everyone. Privatizing the social security system is a proposal that could help prevent the social security system …show more content…
Although it will not benefit the U.S economy, it will put billions and billions of dollars in the pocket of Wall Street worker, stock brokers and corporate owners and directors of the private pension system. Which they would have a point in because when the pension system is being privatized there is a possibility of special insurance protection been reduced such as disability insurance because a lot of cuts will have to be made to these programs to be able to fund or invest in the private pension system. Some will also argue that there is a higher risk and the chances of complication in investing, retirement money in a private pension system because indidviuals in charge can lose their entire retirement safety with one bad …show more content…
Due to the surplus number of people that will be retiring soon, the benefits from the Social Security will be hitting the Government really hard, and the only way the Government will be able to keep it sustained is to make a lot of cuts from the benefits, or loan a huge amount of money from another bureau department. Other options they might use to make up for the losses would be to raise up the contribution level which is being experienced. That is, to increase the amount of taxes for the working citizen or even raising the retirement ages. Privatizing the social security system can hinder all this from happening by funding the existing payroll tax, therefore avoiding and preventing any benefit cuts or tax increase. Another benefit of the privatized pension system is; it will increase the viability of the program. In 1935, the social security system started and then there were 18 working citizen contributing towards the retirement of just a person’s benefit. Now, lets fast forward to the future, to the year 2035. The estimated number of working citizens that will be contributing to one person’s retirement benefits is 2. The main reason for this major difference is that when the social security system was established in 1935 people had a shorter life expectancy and the only viable option for a population that is living longer is to put social security into a personal investment account. But by

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