As much as possible, the existing retirement savings infrastructure should be utilized, meaning workers would have a large number of safe and secure options. Moreover, a safety net would be provided guaranteeing that no senior would end up in poverty as a result of bad investments. Don't touch Grandma's check. Benefits to the currently retired and nearly retired should not be reduced. Indeed, by explicitly recognizing benefits owed to current retirees, privatization would guarantee those benefits in a way that the current political system does not.
More privatization is better than less.
Given the advantages of a privatized Social Security system, there is no excuse for stopping at the privatization of only 2-3 percent of payroll taxes. Once Congress has conceded that private capital investment can provide better and more secure retirement benefits, it should press on and allow workers to control the maximum feasible amount of their retirement income. Many people think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. However, the U.S. Supreme Court has ruled that workers have no legally binding contractual rights to those benefits. In today's commentary, Michael Tanner argues that under a privatized system workers would have full property rights in their retirement accounts.