People who contribute to social security should have the right to choose how their money is invested. The work is to be 6 pages with three to five sources, with in-text citations and a reference page. The system is currently in a status wherein it somehow manages to pay off its financial obligations to its members however, the money being disbursed is not equivalent to the lifelong contributions that the members have been making. Neither is social security a financially secure program as the office itself has a problem collating funds in order to fund itself. The program is basically bankrupt. Knowing that social security is in dire straights due to the U.S. economy, one cannot help but wonder, maybe the system will be better off if it is privatized and the members are given the opportunity to invest the money they contribute to the system themselves?
With the annual return of social security contributions pegged at about 1.2. % this means that is has the lowest ROI prediction of all the retirement investments of an individual. The expected ROI from the stock market averages 6.34 %. As such, if a social security account is converted into a private account, the FICA taxes could give a maximum return on the investment upon the retirement of the member. The social security system would then actually be in a position to help supplement the retirees income in a significant manner. (“Should Social Security be Privatized?”). It is easy to understand why most people would see the wisdom in turning over their social security contributions from the government to a personal account instead. The government the government liability in this particular area is higher than what was previously estimated and has exposed them to a $20 trillion liability to the system members. If the social security accounts were privatized by allowing individuals to have their own private accounts, the member will be able to maximize the full potential of his membership with the system.
Keep in mind that when the Social Security Act was set into place by congress back in 1935, Pres.