Text 493, 92 rader
Skriven 2005-02-16 23:36:06 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0502161) for Wed, 2005 Feb 16
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Fact Sheet: Strengthening Social Security for Future Generations
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For Immediate Release
Office of the Press Secretary
February 16, 2005

Fact Sheet: Strengthening Social Security for Future Generations



Presidential Action
  þ President Bush has discussed the importance of Social Security and the
    need to fix the Social Security system for future generations of
    Americans. The President has assured Americans that he will not change
    the Social Security system in any way for those born before 1950.
      þ Social Security was one of the great moral successes of the 20th
        century by providing a critical foundation of income for retired
        and disabled workers.
      þ For one-third of Americans over 65, Social Security benefits
        constitute 90% of their total income

Background on Presidential Action
  þ Social Security is sound for today's seniors and for those nearing
    retirement, but it needs to be fixed for younger workers _ our children
    and grandchildren. The government has made promises it cannot afford to
    pay for with the current pay-as-you-go system.
      þ In 1950, there were 16 workers to support every one beneficiary of
        Social Security.
      þ Today, there are only 3.3 workers supporting every Social Security
        beneficiary.
      þ In 2008 _ just three short years from now _ baby boomers will begin
        to retire. And over the next few decades, people will be living
        longer and benefits are scheduled to increase dramatically. By the
        time today's youngest workers turn 65, there will only be 2 workers
        supporting each beneficiary.
          þ Under the current system, today's 30-year-old worker will face
            a 27% benefit cut when he or she reaches normal retirement age.
  þ If we do not act to fix Social Security now, the only solutions will be
    dramatically higher taxes, massive new borrowing or sudden and severe
    cuts in Social Security benefits or other government programs.
      þ Just 13 years from now, in 2018, the government will begin to pay
        out more in Social Security benefits than it collects in payroll
        taxes _ and shortfalls then will grow larger with each passing
        year.
          þ By the year 2027, the government will somehow have to come up
            with an extra $200 billion a year to keep the system afloat.
          þ By 2033, the annual shortfall will be more than $300 billion a
            year.
          þ By 2042, when workers in their mid-20s begin to retire, the
            system will be bankrupt _ unless we act now to save it.
  þ To keep the promise of Social Security alive for our children and
    grandchildren, we need to fix Social Security now once and for all. We
    can not pretend the problem doesn't exist. The fact is Social Security
    will go broke when our young workers get ready to retire. Every year we
    wait the problem becomes worse for our children.
  þ President Bush has pledged to work with Congress to find the most
    effective combination of reforms. He will listen to any good idea that
    does not include raising payroll taxes.
      þ Fixing Social Security permanently requires a candid review of the
        options.
      þ Over the years, many people from both parties have offered
        suggestions such as limiting benefits for wealthy retirees,
        indexing benefits to prices, instead of wages; increasing the
        retirement age; or changing the benefit formula to create
        disincentives for early retirement. All of these options are on the
        table.
  þ As we fix Social Security, we must make it a better deal for our
    younger workers by allowing them to put part of their payroll taxes in
    personal retirement accounts.
      þ Personal accounts would be entirely voluntary.
      þ The money would go into a conservative mix of bond and stock funds
        that would have the opportunity to earn a higher rate of return
        than anything the current system could provide.
      þ A young person who earns an average of $35,000 a year over his or
        her career would have nearly a quarter million dollars saved in his
        or her own account upon retirement.
      þ That savings would provide a nest egg to supplement that worker's
        traditional Social Security check, or to pass on to his or her
        children.
      þ Best of all, it would replace the empty promises of the current
        system with real assets of ownership.
  þ President Bush understands that reforming Social Security will not be
    easy. But he believes that if we approach this debate with courage and
    honesty, we will succeed. Our children's retirement security is more
    important than partisan politics.
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