While administrative costs would give investment firms billions of dollars, these same costs would wipe out much of the benefit to low and moderate income investors in a partially or wholly privatized system. Privatization would turn over the Trust Fund s trillions of dollars to Wall Street. A few people, undoubtedly, would become mind-bogglingly wealthy. The great success of the present system is simply that the elderly and disabled and survivors of deceased workers are guaranteed , and receive, a benefit check every month. Privatization of the Social Security system would be a costly gamble for the nation and individual workers.
Retirees can t wait five or ten years for a bull market to return.
In a privatized retirement system, each individual bears the risk. Some will pick the wrong stock. Some will retire when the economy cools. And if you retire during a stock market crash, well, tough luck. With privatization the only guarantees are that many will suffer and the rich will get richer.