Part 8/12:
However, privatization raises serious concerns. Notably, it presents risk exposure to investment volatility—a concept many Americans have already experienced with their private retirement plans during economic downturns. Transitioning to such a system could also prove prohibitively costly and would eliminate the guarantee of income that Social Security currently provides, a significant lifeline for many retirees.
Furthermore, as the demographic reality shifts—with a growing number of Baby Boomers entering retirement while fewer workers contribute to the fund—the current system faces mounting pressures. The concern is that without intervention, only about 79% of scheduled benefits will be available by 2033.