Private SS

The latest information indicates that social security will begin to reduce benefits in eight years. Three fourths of young people feel that SS will not be there for them. Social security under its present form is racist since White females collect more than twice as long as Black males. One way to solve both of these problems is to privatize SS. Each working person must set aside 6.2% of earnings for SS and 2.2% of that is for survivor and disability benefit while the remaining 4% is saved for retirement. The employer matches these amounts so the total going for retirement is 8%. The stock market over the past 100 years has averaged 10% growth per year. If a 25-year-old person earning $50,000 per year and receiving a 3% raise every year and investing 8% of their annual income at 5% return would have $650,000. Investing this at 5% would provide $2,700 per month. Under the current law this person would get $2,014 per month from SS. Upon death all payments stop. In a private account the entire $650,000 would pass on to heirs. Starting next year every person who turns age 25 will begin privatizing their SS and in 37 years the whole system will be private. If the market continued at 10% has it has in the past the 25-year-old of today would have $1.7 million which at 5% would provide $5,200 per month. Most young people would like this better.