What will Social Security privatization do?
Privatization will replace Social Security’s guaranteed defined benefits with individual investment accounts. In other words, privatization would take money out of Social Security and have workers invest instead in Wall Street. This transfer would drain the Social Security Trust Fund and would force large reductions in Social Security benefits and unfairly burden all Americans, young and old, with trillions of dollars in additional government debt. Privatization places all the risk of having a decent retirement income on the individual. With privatization, workers will assume the risk of their retirement security. They will have to cope with the risk of a bad investment, the risk that they will outlive their assets, or the risk of a market downturn. Between 1999 and 2002, market invested 401(k) accounts of people over 60 lost 25 percent of their value . What does privatization mean for current retirees and people nearing retirement? Because privatization diverts two-thirds of the emplo
Privatization will replace Social Security’s guaranteed defined benefits with individual investment accounts. In other words, privatization would take money out of Social Security and have workers invest instead in Wall Street. This transfer would drain the Social Security Trust Fund and would force large reductions in Social Security benefits and unfairly burden all Americans, young and old, with trillions of dollars in additional government debt. Privatization places all the risk of having a decent retirement income on the individual. With privatization, workers will assume the risk of their retirement security. They will have to cope with the risk of a bad investment, the risk that they will outlive their assets, or the risk of a market downturn. Between 1999 and 2002, market invested 401(k) accounts of people over 60 lost 25 percent of their value . What does privatization mean for current retirees and people nearing retirement? Because privatization diverts two-thirds of the emplo
