Personal retirement accounts will only have to pay about 4.2 percent annually to make up the difference. If it earns more, her Social Security retirement income would go up. Administrative costs will eat up most of the savings. All this does is enrich Wall Street. Actually, Wall Street has limited interest in this issue because the profits would be so low.
Many people pay more than that each month for just a checking account.
Opponents of reform point to the cost of other accounts, but the ones they choose tend to be more elaborate and customized than is necessary for a Social Security-related account. Separating truth from political rhetoric is difficult, but important. This debate will be crucial to our nation's future. Stripped down to the basics, it is about how to increase retirement security for Americans of all ages. It is about whether our children and grandchildren will have the same opportunities that we have or be forced to pay ever higher taxes.