[PeterPrinciple]

Privatize accounts as Chile did.

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Which gets to the biggest drawback of private accounts for social security: They don’t, and indeed can’t, pool risk across the population.

https://www.cfr.org/article/chiles-failed-pensions-are-neoliberalisms-badge-shame

And what happens when the stock market crashes? You cannont eliminate risk.

[aMorePerfectUnion]

Which gets to the biggest drawback of private accounts for social security: They don’t, and indeed can’t, pool risk across the population.

1. Insurance companies do this regularly with annuities.

2. The single largest risk to Social Security is government theft, which you can only de-risk by keeping their hand out of the cookie jar.

[monkeyshine]

The IRA program works just fine. You can’t eliminate risk but you can mitigate it by requiring additional diversification and allocation requirements.