being an economist does not mean you understand how everything works because in my opinion he over looked a major factor . he knows behavioral economics ... evidently what he knows about ss and retirement planning is weak .
social security is an insurance program just like an annuity . in fact ss is an annuity product and those who die pay for those who live !!!!!
that is how all life annuities work unless you add expensive life insurance riders which again work by the reverse - those who live pay for those who die ....
that means pretty much those who die forfeit their money ... would you want to forfeit your 401k money as well as ss if you died ?????? me neither , it is bad enough that money dies with us from ss as it is , unless we have a spouse , but it will never go to heirs . annuities with life insurance riders are sooooooo not worth it because they become so expensive vs what you get .
i certainly would never take money from my 401k that i was not willing to "lose" if i died and purchase a life annuity ....
in the world of social security those who die provide what are called mortality credits , which magnify the income many times over what it really is .
social security can only invest in special treasuries which pay the going rate for the most part .
if one of us bought a treasury that paid 3% for 30 years all we get is 3% a year... period .....
but imagine 30 people paying in to social security and they buy the same treasuries .... but the deal is if one dies every year , their bond is thrown back in to the pool for those who live ...
well you can see over time social security is not getting just 3% ..that return is growing and growing as each year another bond gets thrown in the pool ..last man standing has a whopper of return ....
so that is how those who die pay for those who live and no they can't have their money go to heirs .... that would require more payments in to a life insurance rider pool where again those who live pay for those who die ...it is the opposite effect.
buying MORE OF an annuity which is what ss is is fine providing it GOES WITH YOUR OWN INVESTING , not instead of your own investing and money ....you need to have enough saved already and then you can take some of the bond money and fund an annuity ... but you should never ever do it without your own funds being funded first ..it goes with your own investing , like icing on a cake , not instead of it.
like most economists they know what they know , but they don't know what they don't know .