Workers who invest privately over time will retire with higher incomes than those who rely exclusively on benefits from Social Security, according to a new study from the CATO Institute.
“If workers who retired in 2011 had been allowed to invest the employee half of the Social Security payroll tax over their working lifetime, they would retire with more income than if they relied on Social Security,” the study found.
“Indeed, even in the worst-case scenario – a low-wage worker who invested entirely in bonds – the benefits from private investment would equal those from traditional Social Security.”
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