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 would give all workers a leg up to save more for retirement. Some workers need this help more than others. According to a recent study, Hispanic workers, especially those with lower wages, are less likely than their Anglo counterparts to participate in a workplace retirement plan. These workers have no other means to save for a secure retirement than to put aside their Social Security taxes in a personal account that they own and control.
The system has a problem, and we need to fix it. Personal accounts are the solution.
Hispanic Workers Less Likely to Participate in Workplace Retirement Plans
Source: Craig Copeland, “Employment-Based Retirement Plan Participation,” EBRI Issue Brief No. 74, 10/2004