"The biggest problem of Social Security isn't the question of returns to the trust fund, but the disconnect between (Social Security) taxes and benefits." People "don't see the connection. We must connect the benefit with the tax. This produces many times the efficiency than investing the trust in equities. We must connect benefits with taxes in order to increase incentives. Individuals have to see their contributions linked to benefits. I envision something like a 401(k) statement every quarter, showing their contributions. We need to set up individual accounts. It gets people thinking about savings."
Jeremy J. Siegel,
Professor of Finance,
The Wharton School, speaking at a conference in May on Social Security reform, sponsored by the Pension Research Council at the Wharton School of the University of Pennsylvania, Philadelphia.