To Save America, by Newt Gingrich: on Social Security

Newt Gingrich: Capital markets return more that Social Security promises

Beginning at any size, accounts could be expanded over time until workers can choose to substitute them for all their Social Security retirement benefits. This could be accomplished using just the 6.2% employee share of the Social Security payroll tax, still leaving workers with close to twice the benefits Social Security promises under current law (but which in the future it will not be able to pay).

A bill introduced by Rep. Paul Ryan maintains the current social safety net in full by including a federal guarantee that if any retiree's account cannot pay at least what Social Security would under current law, the federal government would pay the difference. Because capital market returns are so much higher, however, it's unlikely the government would ever have to pay off this guarantee.

Paul Ryan: Comprehensive model to restructure retirement accounts

The bill introduced in Congress by Paul Ryan serves as a comprehensive model of how to structure such accounts. That bill maintains the current social safety net in full by including a federal guarantee that if any retiree's account cannot pay at least what Social Security would under current law, the federal government would pay the difference. Because capital market returns are so much higher than what Social Security promises, however, it's unlikely the government would ever have to pay off this guarantee.