Privatization of Social Security

This is either losing everyone you worked on, living in poverty after retirement, or growing your hard-earned dollars and enjoying a safe and comfortable retirement. I think that social security is a fateful government plan and that social security privatization will provide a safer retirement plan for all Americans. The first goal of social security was to help older Americans become elderly and not to get into poverty. Social security was signed by law by President Franklin on 14th August 1935.

Recently, debate about the retirement system in the United States and the privatization of social security is increasing. Social security tax is abolished by privatization, and instead workers are required to assign a small portion of their wages to pension funds, usually mutual funds. After retirement, workers can convert these funds into pensions. Social security is basically a pay-as-you-go (PAYG) system. Tax paid by workers of each generation will be used as retirement benefits for previous generation workers. All generations of workers are confident that retirement payments will be covered by the next generation, but this confidence is gradually becoming fading. Due to the extension of the average life expectancy and the decline of the birthrate, the number of retirees supported by each worker is increasing. At the same time, welfare is growing more rapidly than real wages and we are further enhancing per capita cost to maintain the current system.

There is much debate about the concept of privatization of social security. In general, the Democratic Party tends to oppose it, the Republican Party opposes and both sides expect that the social security system will begin to become deficit between 2013 and 2037, so measures are needed I agree. This deficit will have a negative effect. Retirement allowance affecting recipients and disability allowance Cognac of "water hole" of social security is related to the generation called baby boom generation which keeps leaving the workplace after retirement age. At the same time, the family of the young generation is small, the average life expectancy has never been longer. This will lead to a small number of social security taxpayers supporting each beneficiary.