Although the current social security system has been used for decades in the U.S., it has gained quite a lot of notoriety due to the scarce amounts of financial support that it offers people after they retire. Therefore, the development of a new system has been overdue (Bridgen and Meyer 31). The mandatory private pension system offers a noticeable improvement in the levels of social security since it provides a greater amount of financial support to retired individuals depending on the salary that they received.
The mandatory private pension system offers benefits that the existing system cannot possibly provide. Namely, the opportunity to increase the amount of money that a retiree will receive as their pension is a crucial aspect of the mandatory private pension system that trumps its minor disadvantages (Altiparmakov 228; Hassel et al. 485). Although the private system currently does not allow accessing the funds before the age of 55, it still provides a more dignified life for retirees, therefore, being the superior framework that needs to replace the current one.
Due to the opportunity to receive the financial support that will actually facilitate a more financially secure environment and allow citizens to retire and lead further life with dignity, the mandatory private pension system should be regarded as a necessary step toward improving the existing problems in the management of the needs of senior citizens. In addition, the proposed change will help to address the issue of poverty among retirees. Therefore, the mandatory system should be deemed as a superior one.
Works Cited
Altiparmakov, Nikola. “Another Look at Causes and Consequences of Pension Privatization Reform Reversals in Eastern Europe.” Journal of European Social Policy, vol. 28, no. 3, 2018, pp. 224-241.
Bridgen, Paul, and Traute Meyer. “Individualisation Reversed: The Cross-Class Politics of Social Regulation in the UK’s Public/Private Pension Mix.” Transfer: European Review of Labour and Research, vol. 24, no. 1, 2018, 25-41.
Hassel, Anke, Marek Naczyk, and Tobias Wiß. “The Political Economy of Pension Financialisation: Public Policy Responses to the Crisis.” Journal of European Public Policy, vol. 26, no. 4, 2019, pp. 483-500.