Social security

The case for privatizing social security. In 1986 the federal government started the TSP (thrift savings plan) for all employees. There are five investment options and employees can transfer between plans. If the employee contributes 5% the employer will add 4%. At retirement the money all belongs to the employee who can then take it anyway they want. Employees have been satisfied with the TSP. With social security employees receive only a monthly contribution for life. If you start social security and die the next day all benefits are over. Black males have a life expectancy of 69 years vs White females who live on average to 81. If both start receiving benefits of $1,000 per month at age 62 the White female will collect $228,000 while the Black male will collect $84,000. If their contributions would have been in TSP they or their heirs would get back all of the money in the plan. In time this would tend to equalize the inheritance between races. The average White woman earns $1.5 million during her lifetime and the average Black male earns $1.8 million. Here is a real life example. The average White female earns $37,500 and would get a social security benefit at age 62 of $1,189 per month while the average Black male earns $45,000 per year and would get $1,247 per month. Over their life expectancy's the White female would receive $271,000 and the Black male would receive $105,000. This difference is compounded each generation and has resulted in Black falling further and further behind. This trend could be reversed by privatizing social security.