Or you could privatize it (the Chile model).
I would take a lump sum payout of what my contributions over the year add up to, even if it was required to be deposited into my IRA and the lump sum amounted to Treasury Bonds with varying maturities. If my current 6% SSI tax and my employer match were set to be paid directly into my IRA every month, and my 401(k) contributions (together with my employer’s match) could similarly be directed to my IRA, I think I could be set for a nice long retirement if God gives me the years...
It won’t happen though. The Federal Reserve is the only institution that owns enough T-Bonds to make that work, and the government work for the Fed, not the other way around.
The very fact is that Republicans proposed something very similar to that. And remember the Democrat’s drumbeat response immediately following and into the next election cycle?
“Republicans want to ‘gamble’ with your Social Security by putting it into ‘risky’ investments. Republicans want to ‘privatize’ your Social Security by putting your Social Security into the risky stock market”
Yeah, I remember.