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Adding personal retirement accounts as part of Social Security reform is not a workable solution to the runaway costs of this vital program. The concept is not viable due to the fact that we are human, subject to lapses in judgment, unplanned infirmities and the transgressions of others, and that we do not live in an ideal world.

Social Security was designed as an insurance program. We all pay into a pool of money to provide for our elders. In turn, our children pay in to support us when we are older, when we die and leave spouses and children behind, or when we become disabled. It was designed as a safety net for those who could no longer support themselves. Today's Social Security has evolved into the ultimate entitlement program. You get your benefits whether you need them or not. The age level at which you can draw benefits has not increased at the same level as our life expectancy, leaving us with far more beneficiaries to support at a higher percentage of taxes. The trust fund became a virtual bank for congress to borrow from. Social Security needs to be reformed. But private accounts are not the answer. It might work if you have a high-paying job and survive until the end of a full career. But consider these examples:

1. My father died when I was in college. My brother, still in elementary school, and I received Social Security benefits until graduation. Even though my mother and I worked, and received some life insurance, the monthly Social Security check was just enough to allow me to continue my education. Since my father was only 52 when he died, I keep wondering where the funds would have come from, had it been based on his savings account.

2. Our friends have a 35 year old, mentally retarded son. He works 3 low-level, minimum wage part-time jobs. But that isn't enough to cover his living expenses in his group home. His Social Security check allows him to do that. Whose personal savings account would that come from? His? Certainly it can't be his parents' accounts. That would leave them a little short.

For those who think they can manage their own accounts and navigate their way toward a bigger benefit in old age, I say look at all the smart people who bet on companies with no earnings potential in the dot com years, the thousands who paid out money to help out some poor exiled guy in Africa, who emailed them out of the blue, and the thousands of homeowners who couldn't read and comprehend the terms on their adjustable loan mortgages, and are now losing their homes in numbers that are close to matching the foreclosures in the Great Depression.

In order to save these people from themselves, the government would have to limit investment choices to conservative investments. This would not help achieve a rate of return to give them a respectable nest egg. The more restrictions the government put on the accounts, the higher the overhead would be to administer and audit the program.

Those who say it's my money and it should go to me through a personal account, should re-read the second paragraph. There are ways to reform Social Security to keep it solvent, including removing the tax cap, limiting benefits based on need, raising the retirement age and more aggressive investing. If you do not believe that you have some responsibility to those less fortunate than you, then I suggest a period of reflection to examine your self-absorption. Then I wish you no tragedies or illness, failed businesses, or ill-picked investments. With personal retirement accounts to rely on, you'll need everything to go your way to reach the investment goal you presume these accounts would provide.

Learn more about this author, Liz McGuire.
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