Strengthening Social Security for Future Generations
Presidential Action
- On May 19, 2005, President Bush Visited Milwaukee, Wisconsin To Meet With Younger Workers Who Are Concerned About The Future of Social Security.The President has called for allowing younger Americans the option of safely investing a portion of their payroll taxes in voluntary personal accounts that they own and control within the Social Security system.
Background: Younger Workers Have the Most to Gain From Social Security Reform
- Younger Americans Face A Stark Reality.
- There Is A Narrow Window To Fix Social Security For Today's Youth.In just three years, the first Baby Boomers will begin to retire,putting added strain on the system. In 2017, the system will beginpaying out more than it takes in. This will ultimately result indrastically higher taxes, reduced benefits, increased debt, or cuts toother critical government programs.
- The Government Has Borrowed $1.7 Trillion From The Social SecurityTrust Fund. The government has borrowed the total value of the TrustFund to pay for other government spending. Beginning in 2017, thegovernment will have to begin backing up these paper promises with realmoney.
- A Permanent Solution Is Needed For Today's Youth. A band-aidsolution of quick fixes and small tweaks will only pass this problem onto the next generation.
- Younger Americans Support The President's Social Security Plan.
- Younger People Have Little Faith In The Current Social SecuritySystem. A recent national poll by Harvard University's Institute ofPolitics (IOP) found seven out of ten American college students did notbelieve Social Security would pay out benefits when they retire.
- Today's Younger Workers Want A Nest Egg. Younger workers have seenhow the government has used their Social Security taxes to fund otherprograms, and they understand that voluntary personal accounts offer abetter way to fund Social Security. A recent Fox News poll found 84percent of Americans ages 18 to 55 believe they should have the optionof creating a voluntary personal account within the Social Securitysystem.
- Younger Workers Already Belong To The Investor Class. Youngerworkers today are more familiar with investments than previousgenerations. Through 401(k) plans offered by employers across thecountry, workers know the power of compound interest and how theircontributions to these accounts can grow steadily over time.
- The President Has Outlined Details To Guide The Legislative Process.
- Future Generations Will Receive Benefits Equal To Or Greater ThanToday's Seniors. Under any plan to reform Social Security, futuregenerations should receive at least as much as seniors receive today.
- Protect Future Generations Who Depend on Social Security The Most.Low-income workers should receive benefits that grow faster thanbenefit increases for the wealthiest seniors, which would grow nofaster than the rate of inflation. This change alone would solve 70percent of the funding problems facing Social Security.
- Replace The Empty Promises Being Made to Younger Workers With RealMoney. Younger workers should have the option of putting a portion oftheir payroll taxes into a voluntary personal account. This nest eggwill give workers an opportunity to receive a higher rate of returnthan the current Social Security system can provide.
- The President Will Continue To Work With Congress. Social Securityis too important to pass this problem on to the next generation. ThePresident has committed to work with both the House and Senate in abipartisan way.
