From the day you enter the job market, you have an array of products and services to choose from to build your own customized retirement savings safety net. This is true even today in our mixed economy, although the taxes you pay for Social Security and other programs severely constrain your ability to plan for your own retirement.
In a capitalist social system, you don’t pay social security and other safety net taxes, so you have more money left to save out of each paycheck. You aren’t limited to your employer’s 401(k) or similar plan for additional savings because, with no rights-violating income taxes, tax-deferred savings plans are a thing of the past as there is nothing to defer. And financial institutions are free to innovate without the burden of regulations. This continuously drives down investment costs, again leaving more money for you. And on top of that, without taxes on interest, dividends, or capital gains, and with the power of compounding returns, your savings grow a lot faster.
If you’re worried about the potential future solvency of your financial institution, insurance companies offer inexpensive policies to address such concerns. And to protect their own interests, the insurance companies rate the financial institutions and charge insurance based on the risk level. Consequently, financial institutions have an incentive to not unduly risk your money, because that would mean higher insurance costs and many customers taking their business elsewhere.
Think Right or Wrong, Not Left or Right 