"Today, the Social Security Trustees released their 2011 report on the financial status of both Social Security and Medicare. The reports make clear that both programs are on unsustainable paths, and reforms will be necessary to make them solvent. This analysis focuses on the financial status of Social Security."
Cato Institute, Project on Social Security Choice
The Cato Project on Social Security Choice has developed a market-based alternative to the current Social Security system. Rather than paying taxes into a government-owned fund, workers should be allowed to redirect their payroll taxes into individually owned, invested accounts, similar to 401(k) plans and Individual Retirement Accounts. The benefits of adopting a private retirement system based on savings, investment, and personal ownership include:
- A substantial increase in retiree incomes as a result of higher returns on payroll taxes.
- The potential to eliminate poverty among retirees.
- Worker empowerment.
- Personal control.
- Greater retirement security.
- Provides a death benefit to loved ones in the event of premature death.
- Gives workers the ability to pass down wealth directly to their children.
- An unprecedented burst of economic growth."
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