But IS it a real fix?
What happens when Gen-X happy retiree opens up his account and he doesn't have anything in it because the fool lost it all in the stock market?
What happens to the stock market when everyone pulls their cash to fund their happy years in a camper?
What happens to that $2 Trillion interest compounding debt that the pols are pushing hard to sling around our necks? In the long run, is that really going to be cheaper than the $10 Trillion shortfall? I need to see how it will be paid for before I can decide yes or no on that question. If the fix costs more than the problem, then it's really no fix at all, now is it?
Considering the fact that there is massive unrest in Europe on pension reforms, I wouldn't use them as an example. I have no wish to repeat that scenario here.
What happens to the stock market when everyone pulls their cash to fund their happy years in a camper?
To be honest, if someone is fool enough to not pay attention to their retirement funds, then they deserve what they get. If they don't understand how to manage those funds, then perhaps they should teach themselves, or ask for help in managing that fund. If they suffer due to willful ignorance or an excess of foolish pride, they bring it on themselves. People are usually well-motivated to protect what is theirs.
As for the other, there are always going to be more retirees in waiting with their funds still invested. The market may fluctuate somewhat when the demographics change, but overall, how much more cash would be infused into the market to begin with? That alone would initially distort the market, I suppose. The market would adjust if folks decided to traipse around the country on all their money instead of keeping it in a fund, as well.
As I say, I'm no expert, but that seems to be a pretty fair assessment.
If the Gen xr opens up his account and there is no money in it then the whole country has gone down the toilet.
Private enterprise makes the products, pays the salary's and pays the taxes.
The government takes the money and spends it. Any time government handles your money you loose any where from 30-50% in administrative costs or through theft.
If the stock market has gone to 0 then the entire country is in a Depression that makes the 1930's look like chump change.
The government will have no money to pay any benefits either.
A single company may go belly up but investing in a well diversified group of companies will not.
Over all including the years of the depression. Any rolling 10 year period no matter which year you pick, even if it is 1929 to 1939 the market is up 8-12%.
Social Security as it currently stands is worse than stuffing money in a mattress.