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Many experts believe that a hybrid solution could offer a balanced approach. This model would allocate a portion of contributions to private accounts tailored to individuals’ retirement needs while maintaining a safety net for lower-income retirees, ensuring their poverty risk remains managed. Ideally, this compromise would allow individuals to benefit more directly from their contributions, promoting greater financial responsibility and encouraging higher savings rates.
Among the potential benefits, this strategy introduces flexibility. With current Social Security benefits ending upon a beneficiary's death, a privatized account could permit these funds to be passed to heirs, providing a generational safety net.