The Bush administration is focusing on a Social Security (news - web sites) proposal that would allow younger workers to invest up to 4 percent of their payroll taxes in private accounts, with contributions limited to about $1,000 to $1,300 a year, an official said Tuesday.
That doesn’t smell like it will balance out the benefit reductions I mentioned earlier.
The math is going to be really interesting to see if/when it is disclosed.
I don’t mind the personal accounts, but I do worry that many Americans lack the financial savvy to manage this particular social insurance safety net. I also worry about the unintended consequences of letting so much new capital flow into the markets, as well as the potential hidden costs from such plans.
The details are going to be mighty interesting.