Privatization of the current Social Security system is currently a hot button topic and will be for years to come. The privatization of social security has been a political platform utilized by many politicians. In fact, former President George W. Bush was utilize the privatization of Social Security as a platform and during his administration 47 percent of Republicans supported some plan to privatize the agency. The privatization of the United States Social Security System will provide the opportunity for each American who pays into the system to have and exercise some control over their earned benefits. .
The system that we refer to as the Social Security system was once known as the Old Age and Survivors Insurance (OASI). The OASI began in 1935, at this time it only took the contributions of 17 workers to pay one retiree. Studies now indicate by the middle of the 21st century, that ratio will be two to one workers per beneficiary. [SOC15] Currently, the payments received from the Social Security system provides monetary payments to the millions of American, beneficiaries who are either retired, disabled or the family members of the retired, disabled or deceased workers. In fact, a quarter of US households receive these benefits from the Social Security Administration. These payments to beneficiaries are funded by the payment contributions that current workers make into Social Security funding via payroll tax from employees and employers at a rate of 6.2 percent of wages up to a table income of $117,000, as reported in 2014. The self-employed are not exempt from contributing and are required to pay 12.4 percent [SOC15].
Often, people confuse Social Security with company provided pension plans, however, there is a significant difference. The company provided pension plans require advance funding, which guarantees payment to beneficiaries in the event the company closes. In order to receive benefits from a company funded plan, most corporations, require that the employee make a contribution which the company may match up to a certain percentage.
