Is there a risk? The current plan is risk free. Politicians have been studying remedies to fix the program for over twenty years with little success. Much of their decisions simply put off meaningful solutions by trying to push the retirement age further into the future. While this is a good idea based on life expectancy, their attempt at actuarialism does not take into account the middle and lower class worker's labor pains by the time they reach retirement age. Many simply cannot continue to work much past 65 - if they can make it that far.
The risk in putting money into the markets is inherent. With a current return on Social Security investments at 3% and with the best long term average for the stock and bond mix proposed in the change at 3.5%. It makes the change accompanied by the cost of these new investments hardly worth it. Many folks hesitate to make long term predictions. That should raise a red flag.
Would you be able to invest if your retirement was your responsibility?
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