Unexpected Praise for Australia’s Private Social Security System

Articles like this one are sometimes so frustrating; there are far better national pension systems than the one we have. In addition to Australia, discussed in Mitchell’s article, Chile has a very good, very effective set up. But the statists in this country fight tooth and nail against any sensible reform, as if allowing people to keep their own money, build wealth, and live independently is some sort of horrific crime.

International Liberty

As part of my “Question of the Week” series, I said that Australia probably would be the best option if the United States suffered some sort of Greek-style fiscal meltdown that led to a societal collapse.*

One reason I’m so bullish on Australia is that the nation has a privatized Social Security system called “Superannuation,” with workers setting aside 9 percent of their income in personal retirement accounts (rising to 12 percent by 2020).

Established almost 30 years ago, and made virtually universal about 20 years ago, this system is far superior to the actuarially bankrupt Social Security system in the United States.

Probably the most sobering comparison is to look at a chart of how much private wealth has been created in Superannuation accounts and then look at a chart of the debt that we face for Social Security.

To be blunt, the Aussies are kicking our butts. Their…

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