Should Social Security in the U.S Be Privatized?

[starcraft]

sc94597 said:

starcraft said:

as you can manage your superannuation balance yourself if you like.

That is probably the most appealing part of it. Very good to know. 

It all essentially falls under the 'sole purpose' test. That means, the sole purpose of any decision made in relation to your self-managed super needs to be providing a retirement benefit for yourself/any other members of your self-managed fund.

As long as you meet that requirement (i.e. it really is an investment for your retirement, you and other fund members arent trying to make money off it now, or anything else nefarious like that), your fund contributions get taxed at just 15% (our country's highest marginal tax rate on current income is 47%, making super contributions very appealing).

If you can get past the fact that super/401k is compulsory, you actually have a great deal of liberty in how you manage your money - to your own benefit once you're old enough to cash it in.