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 and the liberal media often talk about saving in a personally owned-and-controlled retirement account as if it were a new idea. Yet IRAs have been available for over 30 years, and they are widely-used today. Over 40% of American households own some type of IRA. In these accounts, ordinary Americans are making rational decisions about how to save for retirement. They are deciding on the proper mix of bond and stock mutual funds, do not “raid” the accounts, and would be aghast if politicians in Washington tried to take them away. Imagine if the same dynamics could be brought to bear to fix Social Security permanently.
Social Security has a problem, and we need to fix it. Personal accounts are the solution.
Four In Ten American Families Have Experience Managing IRAs
Source: Investment Company Institute