Young Americans for the Right to Choose a Personal Social Security Account

“The true foundation of republican government is the equal right of every citizen in his person and property and in their management.”

– Thomas Jefferson

From the day we enter the workforce, young Americans plan, save and strive for ownership, whether that means owning a car, owning a home, or owning our own business.

We enshrine these property rights in our Constitution, and our tireless vigilance in defending these rights is one of the many things that sets America apart as so exceptional.  

Today, it is time for young Americans to assert their right to own something else vital: their retirements and financial future.

The way to do this is by introducing an optional personal savings account alternative to Social Security.

Under the current system, the federal government levies payroll taxes that fund a federal, centralized Social Security system that leaves decisions about one’s future in the hands of Washington bureaucrats.

Social Security is facing staggering deficits today, and some politicians are now presenting the false choice between cutting benefits, raising the retirement age or substantially increasing taxes as the only way to save the system.

Either way, it is the youngest Americans who will face the most future pain.

There is a better solution, with a proven track record of success: Through an optional personal savings account program, American students can start saving the minute they enter the workforce, and will enjoy control over how, and at which age, they retire.

Individuals who opt for the new system will pay a portion of their payroll taxes into the accounts, and would be free to invest these accounts into funds of their choice. Americans will be entitled to every penny that the account earns, and even under modest return scenarios, these accounts would end up paying out benefits substantially higher than existing Social Security payments upon retirement.

In fact, studies show that at standard, long term, market investment returns, for an average income, two-earner couple, over a career the accounts would accumulate to several hundred thousands of dollars, even close to a million dollars or more, depending on exactly how much of their taxes are paid into the accounts.

Over time, the personal savings model will create enough new wealthtoultimately eliminate the deficits facing the existing Social Security system.

Perhaps most importantly, anyone who opts for the new system will have property rights over their personal savings account. The accounts are yours, not the government’s, and no bureaucrat or politician can take this property away from you.

No longer would politicians be able to use your earned Social Security benefits as a political bargaining chip, as President Obama did in July when he threatened to stop Social Security payments until Congress approved his tax hike.