Social Security currently consumes over 20 percent of the federal budget, and that spending will only continue to skyrocket. With a wave of retiring Baby Boomers, people living longer, and a workforce that is growing slower than it used to, it's clear that Social Security’s current system is unsustainable. Any talk of trimming the federal budget must include a plan to reform this broken program.
Some policymakers have talked of increasing payroll taxes or cutting benefits for future retirees to put off the program’s inevitable bankruptcy. Thankfully, there is a better way. Social Security personal savings accounts put the program back on a sustainable fiscal path and offer a better deal for workers than the current system.
The paper below provides an overview of the advantages of personal savings accounts. We hope it can start a more rigorous and fact-based conversation about the future of Social Security in our country.
Ferrara - Social Security Reform