Social Security is a broken system that has run deficits for years and will continue to do so indefinitely. The trust fund, which is nothing more than IOUs from the federal government, will be exhausted in late 2032, and the long-term unfunded liabilities are in the tens of trillions of dollars. Politicians who insist Social Security can’t be touched are not protecting seniors.
The system can no longer be seen as the “third rail” and must be fixed for good. Instead of sending their payroll taxes into a government system that is broken and getting worse, workers would invest those contributions in their own accounts, managed professionally, compounding in value over time. At retirement, that nest egg would belong to them, not to the government. When they pass away, the remaining assets would go to their heirs, building generational wealth instead of disappearing into Washington’s black hole.
Private retirement accounts offer higher retirement income, promote economic growth through investment, and eliminate the government’s massive unfunded liability. Workers could contribute more if they chose, employers could match additional savings, and the program would become permanently self-sustaining. However, transitioning from the broken pay-as-you-go system to a fully funded private accounts model requires significant capital.
A conceptual 20-year transition plan shows the way forward with a gradual shift to private accounts until all contributions go into private accounts in year twenty. Current retirees would keep their benefits, while new retirees would receive a combination of Social Security payouts and private account disbursements until private accounts fully cover their retirement.
The current Social Security program is a financial disaster, and public support for a major change like this is missing. Groups like AARP must stop blocking reform and start advocating for solutions that protect future retirees.
