Individuals would have a choice in their retirement plan and would essentially own their own Social Security benefits, as opposed to the current system that finds middle aged families hoping to see their welfare checks upon retirement. This mere fact would certainly lead to an increase in morale throughout the working class community. However, there are drawbacks that must be considered as well. Most importantly, the cost and maintenance of overhauling such a large system is daunting. Both government officials and taxpayers may see an increased burden as the scope of social security benefits is broadened. While workers would have a choice to invest in a personal retirement account, this leads to more responsibility being places on the workers who will receive the payout. That dynamic has its own set of risks and rewards.
The shift to a personal retirement account cannot happen overnight, nor is it a decision that should be taken lightly. Yet the possibility...
On principle alone, workers should have an increased voice in the fate of their retirement funds. While changes have been made since the Social Security Act was approved in 1935, little has been done to give workers any form of flexibility in determining the path of their retirement funds. The inclusion of personal retirement accounts to the nation's Social Security system would not only address this issue, but may end up playing a role in turning the tides of poverty that has plagued many working class American households.
Beach, William W. (2004). "Peace of Mind in Retirement: Making Future Generations Better Off by Fixing Social Security." Heritage Foundation Center for Data Analysis. No. CDA04-06
The Federal Reserve. "2001 Survey of Consumer Finances." federalreserve.gov/pubs/oss/oss2/2001/scf2001home.html
