The current Social Security program is designed and doomed to fail, for it cannot sustain it’s own weight. At the same time, Social Security has become an unreliable source of income for retirees.
Therefore, a new system should be slowly phased in to replace Social Security, harnessing the power of the US market.
The basics of this proposed system is as follows:
- Upon entering the workforce, a US citizen shall have a government retirement account created for them.
- At the time of hiring, the employee will fill a form, specifying the amount of their pre-tax income to be invested into this retirement account, ranging from a minimum of 2%, to a max of 20%.
- The US government shall automatically match this investment amount, regardless of the percentage selected.
- Citizens may choose how this money is invested, from stocks, to bonds, to crypto or precious metals, if no preference is chosen, the money shall be invested into an S&P 500 index fund as default.
- Citizens may start pulling out this money starting at age 60. Exceptions to this rule will be allowed for intense financial hardships, or first time home purchases.
This system will, over time, create more money in the pockets of US citizens to allow for a safer and more prosperous retirement, while also still saving the US Government billions of dollars over the years.
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