The current social security system should be replaced by an entirely new system. The current system is failing and needs to be changed so that future generations will have income when they retire. Some think that there should be modifications made to the current system but we should just part ways with it and create a new system. Changing the social security system to the Chilean system is needed because the current system will soon dissolve, it would allocate more money to retirees and, it would boost the economy.
The current social security system is estimated to dissolve by 2034. Since our current population is getting older towards the retirement age and a lower birth rate, the amount of funds put into the system is less than the amount …show more content…
The system still has workers’ pay 10 percent of their salary like the current system. When the workers retire they have a few options. They could retire at 62 and receive their pension, they could retire at 65 and receive a larger pension, or they could retire at 65 receive a smaller pension but receive a one-time large payment. By allowing individuals to invest in financial assets the potential return is greater.
The new system would also boost the economy. By privatizing social security there would be a reduced tax load and more savings that would boost the economy. This economic boost would create more jobs and make jobs better with higher wages. Because retirees would be getting more money back it would allow them to spend more and create a higher standard of living.
Some would rather keep the system the way it is or modify it. There is political fear of changing the system with fear of how the public would accept it. Little interest has been shown in the past to changing the system, however as time goes on the system is diminishing more and more. The biggest fear is that the guarantee of return from the current social security system would be at risk by investing into a privatized
The current social security system is estimated to dissolve by 2034. Since our current population is getting older towards the retirement age and a lower birth rate, the amount of funds put into the system is less than the amount …show more content…
The system still has workers’ pay 10 percent of their salary like the current system. When the workers retire they have a few options. They could retire at 62 and receive their pension, they could retire at 65 and receive a larger pension, or they could retire at 65 receive a smaller pension but receive a one-time large payment. By allowing individuals to invest in financial assets the potential return is greater.
The new system would also boost the economy. By privatizing social security there would be a reduced tax load and more savings that would boost the economy. This economic boost would create more jobs and make jobs better with higher wages. Because retirees would be getting more money back it would allow them to spend more and create a higher standard of living.
Some would rather keep the system the way it is or modify it. There is political fear of changing the system with fear of how the public would accept it. Little interest has been shown in the past to changing the system, however as time goes on the system is diminishing more and more. The biggest fear is that the guarantee of return from the current social security system would be at risk by investing into a privatized