Given the volatility of the stock market, why do Republicans want to privatize Social Security?

[Los Mojados]

Even given its volatility the returns are greater. Its not just about the stock market and having a choice of investment options . Its about when and how you can receive benefits. Currently you can start receiving a social security benefit at age 62 but it will be 25% less than at age 66. Congress can change these ages at anytime and has done so before reducing your potential benefit.

Lets say you were born in 1950 and worked to age 60. Your contribution rate is 7.65% of gross federal income and your employer pays a like percentage. That's 15.3% of your pay that goes to social security. Assuming an average salary over 40 years of $50,000 per year you will have contributed $306,000. Your monthly benefit starting in 2012 (age 62) would be $1037 per month. You would need to live until age 84 to collect all of your contributions. If you are male and born in 1950 you probably don't have that long.

If you had invested that same amount in a modest bond fund over the same period you would have at least twice the benefit and could start contributions when you wanted.

You tell me who is going to live better?