Social Security reduction factor: Fully or partially privatize the program
The fifth Social Security reduction factor the government can apply is to reduce Social Security benefits by fully or partially privatizing the program.
This is a solution that former President George W. Bush drove for in the mid-2000s and that former President Trump once supported.
The idea behind privatization is this: A portion of a person’s retirement benefits would be set into a retirement account they could invest in as they saw fit.
This account might have limited investment opportunities comparable to a 401(k) that offers mutual funds, or it could have some other options with few restrictions.
In this system, workers would have the chance to grow their benefits faster than the 2.9% yield the Social Security program receives on its nearly $2.9 trillion in asset reserves currently.
Although privatization would allow us to do more with our retirement benefits, it has two critical implications.
First, we, unfortunately, score poorly regarding financial literacy, so there’s a real possibility some could wind up losing money, putting themselves in bad shape come retirement.
And second, it’s a way of lowering the federal government’s responsibility to provide benefits to retired workers in their golden years.
If you’re having trouble keeping all this information in mind, we recommend picking up a budget planner and going over your finances to see which course of action you should take next. Here’s one of our favorites on Amazon!
What are your thoughts on these Social Security reduction factors? Be sure to let us know in the comments below. And if you found this information useful, don’t forget to hit the share button to let your friends know about it.
But don’t go away just yet! Easy Seniors Club has much more to offer. For instance, did you know about the 8 Best Retirement Health Insurance Options for Seniors?
Are you fear mongering? Are you a senior! you know this first hand? Do you have a solution? If Not why are you scaring senior. You will be senior like it or not? Are you prepared?
you or such a hateful person to scare old people? What is wrong with you? out of ideas for article? Or you just a Democrate. They were the first one to try to take ss away? Tell the truth Be sure old people know this.It will last until you need SS and then gone? What will you do? better get rich quick!
It’s never been democrats that try to get rid of your social security their the ones that greated social security it’s the traitors that call themselves patriots and republicans that want to take your social security. Franklin Delano Roosevelt was the president that gave us social security a democratic president. And your republicans have been trying to get rid of it for one reason, they want to make the billionaires they work for get that money so that those billionaires can help them get richer and stay in power in Washington. People learn history so you don’t get your mind living on right wing lies.
Edith,
You immediately went to the political jibe. If you are a senior now, chances are you were part of the “Woman’s Lib,” “Free Love”, mind-expanding through drugs, etc., etc.,
Channel that inner peace, and become part of the SOLUTION!
Trump the traitor
Would it help solvency if the government were to repay the amount it has borrowed from the fund?
there is no “next” to click
If the government would stop putting their hand in Social Securities till, most of these problems would go away….I paid my whole life into this program….it is a no brainer….it is my money!
Thanks for the info. I am 75 now. do you think I will be affected by all any of these solution?
I did not notice in the plans where Congress plans to repay what they have “borrowed” through the years and not repaid. Biden/Harris recently tapped MEDICARE like it was their personal piggy bank for one of their pet projects !!!! Maybe #1 concern: PROTECT FROM POLITICIANS !!!!!!
these provisions they’re considering should’ve been acted upon decades ago instead of waiting till the 11th hour to do anything about the situation! Furthermore, the fact that they didn’t lift the current ceiling on the income limit to tax higher income earners for their fairer share of SS taxes is just plain ineptness at it’s finest! And finally, instead of conniving ways to cut corners on the low income threshold portion of income earners by targeting the SS recipients, why aren’t we hearing more about cutting into these ridiculously high pension plans, and especially the ones that congressman get handed to them just for completing one term of office?!
Quit “Borrowing” from SS and pay back what was taken out.
Yes we are living longer but there are too many people getting SS that should not be!