Social Security

The Social Security program is sound for today’s seniors and for those nearing retirement, but it needs to be fixed for our children and grandchildren. As you know, Social Security is mainly supported by payroll taxes collected from workers that are used to pay benefits to those seniors collecting from Social Security. Although the Social Security Trust Fund is now running surpluses of income over benefits paid to beneficiaries, the Social Security Trustees project that the Trust Funds will be depleted in 2042. Of additional concern, the Trustees further project that in 2018, Social Security will begin to pay out more in benefits than it receives in revenue. It is important to note that in 1950, there were 16 workers paying into Social Security for every one beneficiary. Today, the ratio is about three to one, and in 2047, that proportion will decrease to only two to one.

The impending financial problems of the Social Security program make it imperative that Congress work now to strengthen Social Security for the future. The longer we wait to act, the more difficult and costly it will be to fix the problem. I believe that investing money in personal accounts and allowing younger workers to decide how their money is invested is an idea that deserves serious consideration. Many workers today have opportunities to invest a portion of their own salary in Individual Retirement Accounts (IRAs) and 401(k)s for a greater return than what the Social Security system offers. Personal accounts invested in safe, low-cost, broad-based investment funds will earn higher rates of return than the traditional system. As a result, these accounts help workers enhance their personal savings which subsequently will increase their freedom to retire by creating a nest egg that they can call their own.

We must begin serious debate now on the future of Social Security and how to strengthen the program. To wait until the program faces an imminent financial crisis would be a disservice to future and near retirees. According to the Social Security Trustees, doing nothing to fix Social Security system will cost us, as well as our children and grandchildren, an estimated $10.4 trillion. The longer we wait to take action, the more difficult and expensive the changes will be. I intend to be a strong proponent of the need to reform Social Security in a way that respects the needs of seniors who depend on the Social Security program for their benefits while at the same time strengthening the program for future retirees.

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Social Security Administration

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