WHAT HAPPENS to the money in your pension, IRA or 401(k) account if you die before you retire? It goes to your named beneficiary, usually your spouse or a child. What happens to the money the government took from you in Social Security taxes if you die before you retire? The answer to that question is why President Bush’s plan for private investment accounts is so important.
The answer is this: Whether you die before or after retirement, every dime the federal government collects from you in Social Security taxes is given to someone else, almost as soon as it is collected. There is no such thing as a Social Security account in your name.
Alia Vibe: Democrats are fearmongering that the plan is too risky. What? Is it too risky for people to own their own social security AND to be able to specifically name beneficiaries in event of death? I'd call this: Looking out for other people. I like President Bush's plan.