Chile provides an example with 20 years of positive experience converting to personal accounts from a system similar to the U.S. Social Security system. The transition will not be easy, but this is the direction we must head because we cannot afford the dilemma ahead of us.
If I were in my 20's or 30's, I'd do everything I could to be out of S.S. as it's now structured. A pay-as-you-go defined benefit plan can be the victim of demographics as is now projected, even with a strong economy. Pesonal accounts provide a healthy ownership mentality rather than a 'you owe me because I've paid my S.S. taxes' mindset. Our 401(k) experience has been positive and can serve as a model for personal accounts replacing S.S. Getting over the transition hump is the tough part.
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