Buy custom Should we privatize social security benefits?
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Business
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| Number of pages / Number of words: |
3 / 826 |
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Based on historical performance the Heritage Foundation computed that the average 40 year old male with an income just under $60,000, will contribute $284,360 in payroll taxes to the Trust Fund over his working life, and can expect to receive $2208 per month under the current program. If these money would have been invested in more profitable but at the same time not too risky assets like treasuries and high-grade corporate bonds over his working life he would have received an at least three times higher monthly payment after retirement...
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If these money would have been invested in more profitable but at the same time not too risky assets like treasuries and high-grade corporate bonds over his working life he would have received an at least three times higher monthly payment after retirement. Not every person has the same risk aversion and since it is every single citizen’s money that is invested in the social security funds I believe that it would be more coherent to establish personal accounts where people are at least partially allowed to choose their grade of risk and consequently return...
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