If we envision Social Security as a contract that provides individual benefits in accordance with contributions, individual retirement accounts are perhaps a reasonable way to proceed. For many, individual accounts foster a sense of ownership and control that in turn promotes feelings of security. Regardless of the overall fiscal health of the Social Security program, each individual would have his or her own personal account. At a time when many assume that Social Security will not exist when they retire, it is easy to see the appeal of such an approach. However, the individualized approach is deeply Xawed.
Individual accounts undermine the vision of social insurance as an expression of solidarity.
Reliance on individual accounts subordinates the notion of mutual protection to the principle of individual choice. While this approach is consistent with the manner in which many older Americans Wnd security, sacrificing the commitment to a basic retirement benefit for all is too high of a price to pay. Ultimately, we must reestablish the priority of sheltering individuals from risk over the ideal of personal gain. Somewhat along these lines, some have advocated that Social Security benefits be targeted by income. If what has happened to support for the means-tested benefit Medicaid is any indication, the widespread support that Social Security currently enjoys would dissipate considerably.