Social Security Fund Reform in USA

In USA, the debate is on the rise about an eminent reform of the nation's social security system. Currently, they have a 'PAY-AS-YOU-GO' system which means social security pension contributions of current working populaiton is being concurrently used to pay out for the pension benefits of the current retirees. So, as such, the contributions are not 'invested' to grow, rather, they are being paid out to current retired people. Some of the reform advocates have voiced in favor of a fully funded system, where the contributions of current working people will be actually 'invested' so that the pie grow bigger, so that, the contributor can receive benefit of his or her own savings when they retire. Current PAYG system is heavilty dependent upon demographic realities. Currently, about four workers are supporting one retiree's benefit. But as baby boomers start retiring in few years, the ratio of retired people to working people will increase significantly which may put the social security system in to unsustainable path where future benefits may have to be significantly sqeezed, if not eliminated. This also has enormous impact on people's labor and leisure choice.