The bottom line is that minority Americans, who on average constitute our lowest income earning Americans, get the worst deal of all. They don’t have extra resources to put in a wealth building retirement account. And the resources they do have are taxed into a Social Security system that pays out a poor benefit which in another 20 years won’t even entirely be there.
End the tyranny. At least give low income Americans the option to get out of the Social Security system. Allow them a choice to take their payroll tax and invest those funds to build their own retirement account nest egg.
Conservatively invested funds over a 45-year working life can produce savings that will pay retirement income several times greater than Social Security benefits.
Over thirty years ago, workers in Chile were given the option to opt-out of their Social Security system. A recent report from a Chilean consulting firm, Dictuc, indicates that private accounts in Chile payout retirement income equal to 87 percent of what workers were earning before retirement.
Today’s Social Security benefits, even forgetting about the upcoming shortfalls, don’t match 50 percent of pre-retirement income
Let’s help solve our national dilemma and also give low-income wage earners freedom and dignity and a chance to build wealth. Give them the option to get out from under Social Security and save in a personal retirement account.