Instead of resorting to higher taxes and lower benefits, all workers could take advantage of the power of compound interest to build their own nest eggs. The 385 billionaires in the world have more income that the total income of half the world's population. A funded Social Security system cuts all workers into wealth accumulation in America. Control and Values. Under a funded system, individuals will own and have control of their hard-earned money, which will be invested in their name in the private sector to cover their retirement.
Focus groups show that individuals distrust the federal government.
They are on a treadmill and strongly desire some sense of control and ownership. Watching annual savings grow in a Social Security savings passbook reconnects basic American values of hard work, taking care of your family, saving for your retirement and having the chance to pass an inheritance on to your children to offer them financial independence and an improved standard of living. Retaining the Safety Net. The goal is to save Social Security and create a two-tiered system. Tier One remains as a federally guaranteed safety net assuring that no individual drops below the poverty line and that all Americans receive a decent retirement income.