Social Security system is inefficient

Ah.. Social Security… It’s wonderful program that takes 12.4% of your income each year in order to secure you your future. Let’s analyze Social Security a bit, shall we?

The purpose of Social Security is to help the average American save money for retirement. Although the funds average annual yield is 5.3%, it’s backed by the United States treasury, meaning it’s a guaranteed investment. 5.3% may seem acceptable when compared to the national average savings account yield of approximately 0.54%, but the truth is that many competitive money market accounts yield upwards of 5.4% without locking up your investment until retirement, or jeopardizing your retirement savings, as nearly every reputable bank is a member of FDIC and have lengthy histories of customer satisfaction. When was the last time you went to your local bank and they didn’t allow you to withdraw your money?

Now let’s compare Social Security to a safe investment in the stock market. History has proven that the safest investment in the market is the S&P 500 index. This index tracks 500 of America’s most prestigious blue chip companies and is a sound investment, with minimal risk. The S&P 500 average annual return on investment is approximately 10.4% (This figure is based on a 78 Year average). The difference may not seem much, but it’s gargantuan on a long term