Social Security cannot afford to pay all of the benefits it has promised. Beginning in 2017, it will run cash deficits that get bigger every year.

Personal accounts in Social Security for younger workers is urgently needed for Americans under age 40, according to a new study by Fidelity Investments. Boomers and Near-Retirees are on track to replace about 60% of their pre-retirement earnings. Those under the age of 40, though, are only on track to replace about half of their wages before retirement. These younger workers are raising families, paying taxes, and have many demands placed on them besides retirement planning. They need personal accounts in order to catch up and make sure that they have a secure retirement. Social Security as it is currently structured won’t be there for them, making the need for PRAs all the more urgent.

The system has a problem, and we need to fix it. Personal accounts are the solution.

Younger Workers Not On Track with Current Retirement Savings and They Can’t Count on Social Security
Source: Fidelity Retirement Index, June 7, 2005