I like the idea that I am in control of my own retirement. That means, I should have the option of OPTING OUT of SS all together. I also support that if you choose this path, the gov't won't bail you out if you are still working at 80 because you didn't plan ahead.
I have yet to enter the workforce (seriously, at least). Keep the few hundred dollars that I sent you, and let me keep MY earnings from now on.
Of course, I realize that this would never happen (unless the entire thing collapses), but it is nice to dream. Private acounts would be the next best thing.
Bush's plan only allows you to put a very small amount in the "private accounts". You don't have direct control over this money, you have a couple of choices supposedly. (It's all still in the planning stage, so you have to take Bush's word for what the options will be and assume Congress doesn't change them.)
It's not like the Thrift Savings Plan whatsoever. The TSP is voluntary. Plus, you can get your money back if you want it. (Yes, early withdraw fees and taxes are insane, but it is still allowed.)
The transition costs for his proposed plan will be expensive. Really expensive. Plus, I want to know what the fund management fees will be. I'm suspicious by the lack of anyone meantioning them. This will NOT do anything to fix the long-term funding problems in the system. It's only diverting part of the funding to a private account, and balancing the books by subtracting it from your benefits.
Better hope you make more than inflation in compound interest after the transition costs, management fees, etc elsewise you lose money. This wouldn't be a problem if the economy was guarenteed to work perfectly, but that's the tricky aspect. You don't have complete control over these private accounts, you have a limited number of gov't sponsored options. If the economy tanks, you have no way of directly managing your money or trying to minimize the damage.
SS is a failing system. I dislike being forced to give up a large percentage of my paycheck that I know I'll never likely see again. Bush's proposed private accounts will not fix the situation. Gods know what Congress would do to Bush's proposed strategy anyways.