Pete said:
Totally against it for 2 reasons.
1. Most Americans are goobers and will opt out with the plan to start saving "tomorrow". "Tomorrow" will never come, they will be dirt poor and need help and because we are America and will not allow people to starve on the street we will end up paying them SS by another name anyway except they will have never paid in.
2. Bad crap happens to unsuspecting people. when it does and they end up old and poor see #1 above.
I think it ought to be at least like the Thrift Savings Plan, except with the same deductions. You're right, most Americans ARE goobers when it comes to retirement - you can repeat the refrain "SS is supposed to SUPPLEMENT your retirement" but they still won't listen.
To work, I think at least a couple things have to happen
1. SS is entirely out of the federal budget. I'm serious. The reason why it's pay as you go now is because they spend the extra so much now, they depend on it. I'm tired of this stupid unified budget crap. Why set up a completely separate tax for an entity, and then commingle the funds when it suits you?
2. Personal accounts which are invested. You DO have a box with your name on it. Making out IOU's, paying off at a LOW rate of return after decades - it's a waste. When any other form of reasonable investment would pay off better than SS, it's done atrociously.
3. Mandatory minimums - to avoid the goober factor. Nitwits who don't pay in today, but will raise hell later when the winter comes.
4. Partial personal investment capability. Right now, the TSP has funds you can freely manipulate to maximize your return. Or not.
It's insane to have a retirement "plan" that is pay as you go. It's crazy to send all that money to Washington and it never earns a dime. The minimally intelligent thing to do would be to buy bonds with it, or deposit it so it could collect interest. Right now it does nothing except get spent - with a little IOU a la "Dumb and Dumber" with a promise to pay it back.