Mandatory Private Pension

Superior Essays
America's Social Security system is in serious trouble. Payroll tax rates have been increased over the past 40 years. Social Security has become an increasingly bad deal for American workers who must pay record high taxes to a system that provides only meager levels of income for their retirement years. The current social security system is no longer a feasible approach to providing social security. Mandatory private pension systems not only offer an alternative to the failing system we are currently using, but it also offers citizens’ opportunities to make choices and have a greater control over their futures. The current social security system should be replaced by a mandatory private pension system. First, individual investment accounts …show more content…
Among everyone in the United States, there is a group of people who depend on social security the most. Sadly enough, it is these people who receive the least. The poor are always more likely to look for benefits for retirement: they have the least money. Because of the low return of Social Security, poverty is common with the elderly. Not only do the wealthy have more money, they usually live longer and receive more payments. Wealthy people make more money, and pay more social security, so just because the poor people don't make as much money; they have to suffer in the end. With privatization, life expectancy would not be a factor. People would have a property right with their benefits, and any remaining benefits at the time of their death would go to their heirs (Tanner). There are those who have depended on welfare for their life; privatization gives those people the chance to make more money to leave poverty. They have the chance to invest their money in bonds. It is those people who have depended on government programs such as housing projects and food stamps. Their family will continue on down the line needing government, help due to the fact that their successors in life will receive nothing from them when they

Related Documents

  • Improved Essays

    Social Security: Heart of the New Deal On a historic day in Congress, August 14, 1935, President Roosevelt signed the Social Security Act into law. At the time, America’s economy was in shambles, which had led to an extremely high amount of unemployment rates and poverty throughout the country. Despite its goals and hopes to better the economy, it was not met without resistance. Many opposed the New Deal in favor of previously presented plans and many opposed for the belief that it was infringing on their freedom.…

    • 885 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    While social security is a great program and provides millions of people who can no longer work with money to help them survive, there is one small problem- “current predictions indicate that…

    • 847 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Over 61% of beneficiaries get half or more of their income from social security, the other 33% rely on 90% or more of their income from benefits. Social Security is a vital financial support for these individuals, and according to the Social Security Board of Trustees, in 2016, nearly 61 million Americans received approximately $918 billion in benefits (Trustees 2016). One of the greatest social issues that Americans face today is the future of the Social Security system. Unarguably, Social Security is one of the most important anti-poverty programs in the United States providing millions of Americans that can no longer work with a financial security safety net.…

    • 1236 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    If there are other evidence that supports the same conclusion, it is a very important lesson for all of us here in the United States. In recent years, there have been mass amounts of articles and stories about the Social Security Disability Insurance Program and the increase in participants and benefits. Per the latest Trustees’ Report data, SSDI’s capital will be solvent by 2016, leaving no doubt about the fact that the program is extremely crooked and is not financially intact. Moreover, on benefit decisions s showed that the program’s process for determining who is disabled or not is so bad as many as 25 percent of the decisions could be negatively…

    • 652 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    During World War II, Franklin D. Roosevelt came up with a plan to secure the retirees. Social security was invented, and still is a pay-as-you-go program. The workers pay taxes and the beneficiary receives the money, with a promise to the young worker that the same benefits would be there when he retires. This system was very beneficial when it started, but because of the baby boomers coming to the age of retirement the system is imploding on itself. The current social security system should be replaced by a mandatory private pension system.…

    • 892 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    So what source of income will they use now since those individuals put most of their paychecks only in investments Americans holding private accounts would face incredibly difficult decisions about where to invest (75) So based on what you receive is based on if the stock market rises or not which would probably not be enough based on when the individual…

    • 1631 Words
    • 7 Pages
    Improved Essays
  • Great Essays

    Social security should mirror those trends by allowing individuals choices and options. However, completely maintaining the status quo or going 100% private proves unrealistic and politically unfeasible. A partial privatization of social security would solve many problems and maintain the basic structure of social security. This would “allow workers to manage their own retirement funds through personal investment accounts (Zogby, Bonacci, Bruce, Daley, & Whittman, 2003, p. 3) chosen from a “large list of funds approved by the government” (Feldstein, 2011). Privatization of social security will allow individuals to transfer the 6.2% social security tax they’re already paying into a government selected fund of their own choosing.…

    • 1131 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Many might view Social Security as an employment of communist ideology by the federal government, but they fail to realize the difference between domineering control and reasonable socialism. People need helping sometimes. In a nation that runs on capitalism as ours does, we tend to forget about anyone who is not ourselves. People suffer on sidewalks and we kick up dust over their meek signs pleading for a little change, a little assistance. Social Security is a form of assistance that we have no right to take from those of us who desperately need…

    • 537 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Social Security Proposal

    • 1102 Words
    • 5 Pages

    Since 1935, In the United States, Social Security has been around. Social Security is essentially the Old age, Survivors and disability insurance program, though the Social Security Act was singed into law by President Franklin Roosevelt. Social Security is funded trough the peoples payroll taxes and Federal Insurance Contributions Act tax. This is one of the reasons it is such a big deal when it comes to the Presidential Races that we see today. For me, its really not that important of an issue for this upcoming races because I'm not setting up my retirement plan anytime soon.…

    • 1102 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    War On Youth Essay

    • 627 Words
    • 3 Pages

    Final Essay “Democrats’ War on Youth” by W. James Antle III The Washington Examiner article about the War on Youth is an effective argument, but does seem to jump to conclusions making it feel as though today’s generation is doomed. The metaphor of “war” is heavily used in politics, as it isn’t a literal war, but has a similar devastating outcome. The author compares it to the war on women, something many people have head of. It begins talking about young people struggling in today’s current economy, how policies persuade them without revealing the heavy fiscal burden on the youth.…

    • 627 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Healthcare: Medicare, Medicaid, Social Security insurance Elder adults how are lucky enough to have money saved to their account or through a pension fund to become retired. Many people have money placed for Medicaid, Medicare, or a social security income. The top two are Medicare and Medicaid which were originally funding by the government as a means of assistance. Medicaid is a state and federal program that provides health coverage if you have a very low income (Crosta, p. 6). In order to qualify for Medicaid, you must be pregnant, disabled/impaired, living below the poverty line.…

    • 709 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The public and politicians show growing interest in the concept of replacing Social Security with a private system of individual accounts. It is too soon to state that curiosity will lead to approval of this idea, however it is obvious that ab enormous amount of people are thinking about adapting alternatives to Social Security. There lots pros and cons towards this problem but in my opinion, Social Security has to be privatized I believe that privatizing Social Security people can gain an number of benefits. The firs reason why this idea should be accepted, it can raise the income of workers.…

    • 553 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    According to the Social Security Association’s 2015 Trustees Report, they have been paying more benefits than it receives in workers’ contributions – evidently showing irresponsible spending. Furthermore, since Social Security does have issues keeping up with the demand of retiring workers, abolishing the system would free up 26% of normal spending yearly (SSA 1). With other world issues, such as international defense, other welfare programs, and infrastructure, that $888 billion per year could be put to better use. Currently, Social Security imposes a bigger burden on the American worker – jumping from low rates of taxes to up to 12% for a self-employed individual (SSA 2). This forced tax takes away choice and financial flexibility, leading to the biggest advantage of privatized Social Security and retirement: freedom of…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Free widespread social insurance will advantage and help a large number of…

    • 888 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Another weakness is that the government has proposed to remove or reduce tax incentives for retirement plans (“American Views,” 2015. pg. 2 ¶ 7). This would restrict individuals from making their own…

    • 1546 Words
    • 6 Pages
    Great Essays