Yes, just like with the 401k. Get pretty much every working individual in America heavily invested in stock assets by default. During even a reasonable market it’s a win win win for everyone involved. Companies make more money, people get high returns on their money, employment is higher and the government doesn’t have to guarantee anyone’s pension. The downside is an extended bear market can collapse the entire system.
It's definitely a win for the financial industry. They make way more in fees than they ever did from the pension funds. I would love to see the evidence for the statements "(non-financial) companies make more money", "people (broadly) get high returns on their money", and "employment is higher".
Nah, if I've learned anything, it's that the money printers will turn on at the first sight of major trouble and everyone (some, more than others) will pay with inflation.
There's nothing inherently unsustainable about social security. If FICA tax revenues don't keep up with benefits, benefits can be cut to make up for the shortfall. If you haven't noticed, due to our still-falling life expectancy, we keep having to move armageddon day back. I think there are many in high places that worry insolvency may never come.
It is unsustainable in its current form. Of course you can cut benefits, raise taxes, raise age, etc to extend it for however long it makes sense. But it was designed for an evergrowing number of taxpayers, who'd support those before them due to strength in numbers. But as the tax burden grows, more and more people are going to be against it. I don't expect the majority of Gen Z will ever see a penny of it. I'm not sure I will, either.
If Gen Z never sees a penny from Social Security, it will be because of the loss of political will to protect Social Security as we know it. Which would only happen if this continuing misinformation campaign convinces the younger generations that they will never get anything from the program.
Social security can literally go on for centuries, just fine, as long as there is political will to keep it going.
