Private Pension Plan Essay, Research Paper
Private Pension System
The Current Social Security system should be replaced by a mandatory Private Pension plan. There are different types of investment plans one could choose before or even after they retire. Social Security is what everyone depends on once they retire at 65. Some people may even need to work beyond the age of 65 due to the lack of money they receive from Social Security. With a Pension plan you are insured to receive the money you worked hard for and maybe even a little more, ?Most pension plans are insured, but some of the smaller pension plans are not covered.?(PBGC 1)
One disadvantage about Social Security is that there is a limit on how much you can make each year, ?the maximum social security retirement benefits for a worker retiring at 65 is $1,536.?(SSA 1) If you collect over this amount of money you better be ready to pay the government back big time. Social Security and your Pension Plan come out of your check each week, but you get to decide where you want that Pension Plan to take you. Your Social Security goes right to the state for when you retire at 65. Both the Pension Plan and Social Security have age requirements, but both age requirements are the same. Which means if you retire before 65 half of your money will go to the government if you have it all in Social Security. Most Pension Plans will make you some money in the future for when you are ready to retire!
You could invest your money into all different types of accounts for when you retire. There is the 401K plan, timeshares, mutual funds, Roth IRA, and Stocks. A good example of saving now would be, I have my own Pension Plan. I have what is called a Roth IRA. Which is, each year I put away $2,000 dollars in a special account for me when I retire. When I do retire I will have enough money to live comfortable and happy! A lot of people invest there Pension into a 401K plan, which is similar to the Roth IRA, ?Employees who participate in 401K plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments. In a 401K plan, your account balance will determine the amount of retirement income you will receive from the plan.? (PWBA 1) These are just some examples of the many investment plans there is to offer to the people of the country.
I fell that it is morally wrong to take Social Security from the people of the country when who knows if there will even be any money for us there when we retire. At the rate this world is growing there might not be any money to collect in 40 years. And there went all our Social Security and how am I now suppose to live. If you place your money in a Private Pension Plan you can rely on that money to be there for when you retire and it may even gain interest. Pension Plans are better for the country because you can uphold your own personal retirement fund.
The current Social Security system should be replaced by a mandatory Private Pension system because I feel that if we the people of the country don?t stand up for our rights now, we will be working for the rest of our lives. Private Pension Plans will provide you with all you will need when you retire at 65. You will be worry free of
the aggravation of Social Security. Social Security and Private Pension Plans both have their advantages and disadvantages, but I feel that if the young people can start saving for their future now, it will be a better future for everybody!
?Social Security Administration.? 25 November 2000(updated)
http://ssa-custhelp.ssa.gov/cgi-bin/ssa/solution(30 October 2000) 1pg.
?Pension and Welfare Benefits Administration.? 20 November 2000(updated)
http://www.dol.gov/dol/pwba/public/pubs/401kfe~1.htm(31 October 2000) 4pgs.
?Pension Benefits Guaranty Corporation.? 28 November 2000(updated)
http://www.pngc.gov/publications/YGPTEXT.HTM#insured(1 Nov. 2000) 1pg.