Legislation on opting out of social security is necessary

Legislation on opting out of social security is necessary
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Legislation on opting out of social security is necessary
There is a need to pass legislation, which would allow employees and employers to opt out of Social Security. In spite of Social Security, being an appropriate program for people with disability and those in old age, the program is less beneficial to contributors (Kadlec, 2012). The inefficiency of the system now means that the investment is not worth it as today’s is generation will pay more taxes into the system that then the benefits they will receive. It is unfair to require employees to contribute more of their earnings to a system that does not provide equal benefits. Employees ought to choose contribution schemes that diversify their portfolio to minimize risks.
Even though, there are fraudulent cases whereby investors lost their money from the activities of fund managers, private contribution schemes are relevant to the individual needs of contributors. The actions of renowned investor Bernard Madoff highlight the risk of investing without doing a proper background check. The case is an exception in the investment world as there were warnings that Madoff’s returns to investors were unrealistic. One cannot justifiably claim that the Social Security is the best option available, as the program does not meet the unique needs of contributors. Investment that offer high returns above the market returns, but with little risk is an indication of suspicious investments (Gitman & Zutter 2012).
Conclusion
It is ethical to propose that employees and employers to be given the option to choose their own contribution schemes. Social security uses a flat rate, but contributors do not enjoy equal benefits from the program. Thus, contributions made by employees and employers would be effective in meeting the specific needs of the contributors. In addition, the increased costs of maintain Social Security, makes it unlikely that the program will be sustainable in the future.
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