Individual Social Security accounts

Economy
1

The current Social Security tax rate is 6.2% of their income, with employers contributing an additional 6.2%, totaling 12.4%. This money should be put into an account that individual Citizens control and use to invest. Withdrawals available only at age 62.

This way politicians can’t steal the money and the math works out that citizens will make more money than the current social security plan because of compound interest. Someone making $60,000 a year would add $7,440 into the account each year without impacting their current take home pay. Over 40 years of investment this amount would be enough to replace their income in retirement for the entire length of retirement.

3 Likes
2

I like the idea with one caviat. I don’t like the idea of investing in a 401K. These accounts are vulnerable to manipulation by Stock Traders, banks and such. I’d rather see the money go into a saving’s account like a CD which accrues interest. Investing retirement funds in the stock market can be very risky and could be considered a type of “gambling” with one’s future.