Ask Rusty – Why Don’t They Just Create Individual Social Security Accounts?

Dear Rusty: Regarding Social Security’s financial issues, three people contributing to Social Security for every one beneficiary sounds to me like a surplus. If they had given workers their own accounts, similar to a 401k, where they could manage their own money, it would have worked out more favorably for retirees. President George W Bush suggested these changes, but it was shot down by Congress. 

The average worker now pays a 6.2% Social Security tax. If the government had bumped it up to say 7%, I don’t believe that me or anyone else would have cried too hard. There are ways of correcting this before the SS reserves are depleted and, hopefully, Congress will address Social Security’s financing soon. Signed: Skeptical Senior