Private savings, IRAs, mutual funds, 401ks, and most pension plans, are dependent on the vagaries of markets. But Social Security is the one part of the system guaranteed by the government. People tempted by privatization should also take a close look at the details. Every single plan for total or partial privatization would either cut benefits for a long transitional period, or require higher taxes. That's because all of these plans divert payroll tax money currently earmarked for Social Security payouts.
Some plans raise the retirement age.
Others slash benefits. Current Social Security benefits are pegged to the growth of the real economy, not the stock market. Sponsors of privatization have put forth sunny projections that they can't defend, because they can't predict the future. It is a safe bet, however, that after quintupling in a decade the stock market is not going to quintuple again. Social Security remains the bedrock of our pension system.