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.
The key to a secure retirement is to build up a nest egg for your future. The reason that personal accounts are a good idea for Social Security is that it allows all workers to build that nest egg. Some workers really need personal accounts to give a boost to their nest egg growth. According to a recent study by the Retirement Security Project, Hispanic households have saved less than the average household making the same amount of money. For example, an Hispanic household making between $50,000-$75,000 per year has saved $900 in IRAs and 401(k)s. The average household making that income has saved nearly $16,000 in those type of retirement accounts.
The system has a problem, and we need to fix it. Personal accounts are the solution.
Hispanic Workers Less Likely to Have Retirement Assets
Source: 2001 Survey of Consumer Finances