The current social security system should be replaced by a mandatory private pension system because of the following reasons; With the private social security account, retirees will get higher returns on their savings compared to social security accounts, and therefore, giving those retirees chance to have much money in their pockets and improve their old age lives (Pochinok, Andryushchenko, Savina & Maloletko, 2015) . People are in charge of their retirement decisions with private social security account, unlike the current social security framework where the government dictates. Grown-up people are capable of making responsible decisions on how they want to leave their lives when they retire and should be given that opportunity with the government.
The money would be injected back into America's financial system hence boosting the economic growth of the entire country. This would be achieved by increasing savings from personal accounts and reducing the tax burden which would open doors to greater opportunities like better jobs and higher wages and salaries. Chile is a good example whose economic growth was witnessed when it privatized its pension system.
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Wasteful spending and government workforce would be reduced. Government bureaucracy would significantly go down if managing retirement benefits are left to private companies (Scharfstein, 2018) . The government is currently spending a lot of money paying those people overseeing the accounts of the retirees. This money could be used in other development projects. Private retirement accounts remove the doubt of not getting your benefits after retirement. Many people are not sure whether they would be given their benefits when they retire under the current social security system, but with the private security account, the doubt is cleared because people would be in control of their own accounts.
Workers get the contractual right to retirement benefits with the private retirement account, a benefit which is missing in the current social security system. Workers have all rights to property under private security account and even the government cannot interfere with that right. Social security taxes have gone higher. Instead of giving the government much money as social security taxes, money should be put in private accounts for the workers to be in control of their own money.
With private accounts, loved ones would inherit the benefit if death occurs early. With the current social security accounts, family members cannot inherit benefit of their loved ones when they die early. Private accounts cannot be interfered with by the president or the Congress. The government can use the surplus in the social security to do other government projects but with the private accounts, the government has no constitutional right to interfere with the money (Cristea & Thalassinos, 2016) . Private accounts have more benefits on the minorities and the poor in society. The current social security prefers people with money and whose life expectancy is long so that they would deduct their money for a longer period. To get rid of this desperate act, people should change to personal accounts.
The current social security program will be done by 2034 and therefore, there is a need to come up with a better solution. Being that most people currently prefer a private account to the current social security fund, coming up with a private system would be doing justice to many people. The effort to try and save the existing social security system will be just in vain since most people have lost their trust in it. Saving it will also mean that the tax rate will increase, heavy borrowing and also deep cuts in benefits. These acts by the government will deny the public their right to a better and quality life. The best solution to these problems would be to come up with a private retirement system that would benefit both the government and the public.
References
Cristea, M., & Thalassinos, I. E. (2016). Private Pension Plans: An Important Component of the Financial Market. International Journal of Economics and Business Administration , 4 (1), 110-115.
Pochinok, N. B., Andryushchenko, G. I., Savina, M. V., & Maloletko, A. N. (2015). Place of private pension funds in the financial market. Asian Social Science , 11 (14), 161.
Scharfstein, D. S. (2018). Presidential Address: Pension Policy and the Financial System. The Journal of Finance , 73 (4), 1463-1512.
