Some people say the path to save Social Security lies in the stock market.
Investing could’ve helped the Trust Fund grow its reserves, but the time may have now passed according to experts.
Investing the surplus from the Social Security Trust Fund into the stock market could have potentially saved the program by generating higher returns than traditional low-yield investments. This could have bolstered the fund’s financial strength and prolonged its solvency. Is it too late? Should this strategy still be considered?
Social Security, the Stock Market, and the Future of Retirement
In some ways, investing in the stock market could’ve been (or may still be) a strategy to save Social Security.
Long-term gains are usually better from stocks than bonds, meaning this strategy has merit. However, many worry that the recent fluctuations in stocks could put these funds in a potential financial limbo. Maybe they could generate the returns necessary to keep retirement funded. But if they don’t, it’s a loss to retirees of today and the future.
There’s also the constant fear of politicization of this program. If money is put in select stocks, there will always be the fear that these companies are getting a piece of the retirement funds that should go solely to seniors. This and other concerns like it have put these efforts on pause.
However, with mounting challenges and an aging population, the delayed action on this strategy might have diminished its impact. In a rapidly changing economic landscape, the potential benefits of such a move may now be overshadowed by the urgency of implementing alternative solutions to ensure the long-term stability of the Social Security program. Timely decisions are crucial to address the pressing issues it faces.
What do you think about this option? Could it still work? Let us know your thoughts, then be sure to follow us on Facebook and Twitter!
We also have a strategy to save Social Security. Our petition urges lawmakers to make yearly COLAs a guarantee, and to compensate seniors for years skipped. You can sign here if you support our cause.
