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Reforming Social Security: Privitization Keeps Coming Up as an Option
In the wake of the 2025 Social Security Trustees Report, many eyes are, at least temporarily, focused on the program’s rapidly eroding financial situation. One of the items that quickly surfaces in media outlets is the theory of privatization as an alternative to the current FICA-based funding for the program. Is it a good option, or is it too much of a risk for a system designed with a single purpose in mind: to protect vulnerable seniors and dependents from the ills of poverty in their later years?
Anyone who has followed the evolution of Social Security over the past few decades will quickly recall the proposal by President George W. Bush to partially privatize the program (see post on this site last week), only to encounter headwinds that blocked this avenue. The suggestion has repeatedly surfaced over the past decade as various recommendations have been put forth to salvage Social Security’s financial structure, but conservative thinking tends to prevail. In a post on fool.com, The Motley Fool’s Dana George reopens the discussion on this topic, discussing some of the pro and cons and closing with a comment that nails the thought on congressional deliberations on privatization: “In the meantime, the more immediate goal is to find a way to shore up the current system so that retirees will receive every dollar they’ve been promised.”
Read the Dana George post in full here. Then, take a look at the AMAC Social Security Guarantee (SSG), a proposal aimed at addressing the program’s long-term financial challenges. AMAC’s SSG offers an alternative to the privatization via the addition of supplemental savings programs designed to aid workers in accumulating wealth for retirement. Check out the AMAC SSG here.