Tuesday, February 26, 2013

Privatizing Social Security: We may be better off after all

Word has it that Social Security may be headed for bankruptcy. This has been a heated debate for some time now and the challenge is to either repair the system or find an alternative. Politicians are contemplating a different cost of living calculation now that will reduce Social Security benefits, which the AARP estimates will be $129 billion over a ten-year span. The fact is, Congress can elect to cut Social Security altogether or adjust it any way they want and it has many people afraid.

Professor Antony Davies is in favor of the former. He believes Americans are not benefiting from Social Security anyway because they realize a mere 1.2 percent on average over time. Instead, he proposes private investment, which will allow consumers to generate anywhere between 1.7 to 5.1 percent gains, depending on how that money is invested.

I've attached a four-minute clip of Prof. Davies' proposal below. His idea is worth consideration.

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