Last updated on: 5/22/2017 | Author:

Gus Sauter, MBA Biography

Former Chief Investment Officer at the Vanguard Group
Pro to the question "Should Social Security Be Privatized?"

“[Social security] will be unable to fully pay scheduled benefits by 2034 unless dramatic changes are made… So, how to fix it?

The best way to begin is to implement a compulsory system of private retirement-savings accounts for individuals… In a private-account system, there’s no reliance on demographic trends and the government’s ability to tax workers…

One way to implement such a system is to make 401(k) plans mandatory for every worker. Restrictions could be placed on withdrawals, to make sure people accumulate enough for retirement. To prevent workers from taking too much risk, investment choices could be limited to low-cost, diversified options, such as target-date funds…

An account funded as described above is likely to provide a far bigger percentage of a retiree’s pre-retirement income than Social Security does.

The government in the past has ‘fixed’ the Social Security system by increasing taxes and retirement ages – and the system is still in trouble. Private accounts are a better solution for both the government and retirees.”

“Should Social Security Be Privatized?,” Wall Street Journal, Mar. 27, 2017

Involvement and Affiliations:
  • Member, Investment Committee, Sunsuper, 2016-present
  • Senior Consultant, Vanguard Group
  • Blogger, Online Experts Forum, Wall Street Journal
  • Member, Council, University of Chicago Booth School of Business
  • Chief Investment Officer, Vanguard Group, 2003-Dec. 2012
  • Former Member, Equity Markets Committee, Investment Company Institute
  • Former Member, Institutional Traders Advisory Committee, New York Stock Exchange
  • Head, Internal Equity Management Group, Vanguard Group, Oct. 1987-2003
  • Former Trust Investment Officer, First Bancorp of Ohio
  • MBA, Finance, University of Chicago, 1980
  • AB, Economics, Dartmouth College, 1976
  • Legal name is George Upham Sauter
Quoted in:
Pro & Con Quotes: Should Social Security Be Privatized?