|
First and foremost, let me assure you that I believe current and near-retirement retirees must receive the benefits that were promised to them. However, I believe that there exists a flaw in the Social Security system and without any changes benefits will not be available for our children and our grandchildren.
Social Security is the nation's largest retirement and disability program providing cash benefits to 1 in 6 Americans, including retired and disabled workers and their dependents and survivors. Under the current “pay-as-you-go” system, payroll taxes are immediately used to pay benefits for today’s retirees. In the 1950’s there were 16 workers paying into the system for every beneficiary. Today, there are only 3.3 workers paying for each beneficiary because more seniors are living longer and collecting more benefits and fewer workers are paying into the system. In the future, there will be less than 2 workers per retiree.
As the number of workers paying into the system declines and the number of retirees receiving benefits increases, Social Security will begin paying out more money than it collects in taxes. If Social Security is not reformed soon, by 2041, benefits will be cut by one-quarter across the board, with even more cuts to follow.
The current system, as it is today, will not provide adequate benefits for future generations. If we continue postponing solutions, our children and grandchildren will either face large tax increases or considerable benefit reductions. If we act today, changes can be phased in gradually over a number of years.
For these reasons, legislation is needed to ensure that every person, young or old, deserves the Social Security benefits for which they have worked hard. I look forward to working with my colleagues as we formulate and debate various plans to modernize Social Security.
One thing is sure: there will be no change in the promise of benefits for current and near-retirees. These benefits will be paid on time and in full, with no changes whatsoever. The debate is not about the benefits for current and near-retirees, but for the benefits for our children and grandchildren. They deserve a Social Security system that is stable, funded, and growing, rather than a system that will collapse before they retire.
|
