- It gives poor people a better chance to retire wealthy.
- It makes up for inevitable benefit cuts that must eventually be made to the system.
- The stock market should get an initial bump in value.
- People are given a personal stake in the U.S. economy, providing extra incentive to help their companies and
the nation as a whole to do well.
- Personal responsibility and ownership are injected into citizens' plans for retirement.
- Stocks & bonds are historically safe in long-term diversified portfolios (as evidence by their
every major government/union/corporate pension & retirement fund).
- Individuals who die early and don't recover all they paid in can pass on funds to their next of kin.
- Billions of dollars will be injected into corporate investment, leading to an economic stimulus.
- Poor portfolio management could leave some retirees severely short of funds.
- Wide stock market price fluctuations could leave large groups of retirees in dire straits if their retirement
occurs during a downturn.
- There are several less complicated fixes to social security available.
- This isn't the best time to address the problem (i.e. there are far more urgent issues).
- Even more money will be taken out of an already underfunded system.
- Current IRA's and 401k's offer essentially the same benefits as social security private accounts.
- The transition costs of setting up private accounts would be prohibitively
high and severely add to an exploding deficit.