It has been interesting to watch the debate on social security over the past few years. There has been a lot of talk, but no action. This is my idea to help, maybe fix, the current social security program.
Every paycheck I put money into social security and every year I get a summary from the government on what my benefits might be. It is an interesting read to say the least, but I wonder if there is a better way to invest my future retirement funds. To be totally honest I don't plan to see any social security benefits by the time I retire so should I consider that a wise investment of my money? I do do my best to put money way with every paycheck and my annual bonus. I also try to diversify my portfolio to reduce the risk of losing all of my money in one bad account.
Right now the money I'm putting into social security is going into a bad account. It would be nice if I could be guaranteed that I would get some of that money back. It would be nice if I could diversify those funds thus reducing the risk of losing it all to a broken system. What I suggest is that the social security program institute a 401k match program. In general, if someone invests 5% of their income into a 401k, the government should return 5% of the social security payments and put it into the my 401k. This would encourage people to save money for retirement, thus diversify their potential retirement funds.
I think the government should also encourage companies to provide a 401k match program. It could be done through tax breaks or some other incentive program. Once again this would encourage people to put money away for retirement. If we can encourage more people to save for retirement, then potentially the government could reduce benefits, thus being able to support more people.
You know this is just a thought, but could it work? Let me know. Do you have any suggestions for improvements?
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