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 continually talk down to the American people and assure them that they are just not ready for the responsibility of a personal Social Security account. Over the last thirty years, though, Americans have been shifting a growing amount of their retirement nest egg to IRAs, the closest savings vehicle to a personal account. From 1975 to 2003, the share of retirement nest egg money in IRAs increased from 1% to nearly 30%. In just one generation, nearly a third of all retirement savings was shifted to IRAs. People seem comfortable with managing their own personal account for retirement, and don’t need Washington politicians telling them they are irresponsible and stupid.

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

Share of Retirement Nest Egg Held in IRAs
Source: Investment Company Institute