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.

Opponents of personal accounts in Social Security often speak as if they are a new invention. Millions of Americans, though, already have PRAs in their IRA plans and in their 401(k)-style workplace retirement pensions. From 1970 to 2004, individuals increased their share of private pension holdings as personal accounts from 1 out of $5 to 2 out of $3—a massive increase in just one generation. Most younger workers have never known anything but personal accounts for retirement. Why can’t Social Security adapt to the modern world in the same way private pension plans did?

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

Workplace Retirement Plans Increasingly Held in Personal Accounts