Individual Accounts- Pros
Allow people to invest their Social Security taxes in financial assets such as stocks and bonds
Creating opportunities to accumulate significant retirement assets and income, using very conservative assumptions
The investor in the private accounts owns the corpus of the money paid in, which is not the case with Social Security
Source: Ferrara, Peter. Destiny of Freedom for Social Security? The Cato Institute July 11, 1997.
- Studies have shown support for Individual Accounts among younger Americans
- In 1996, Bill McInturff of Public Opinion Strategies found the public favoring the idea by 68 percent to 11 percent.
- Many Americans overestimate how much their pension plans will provide