U.S. Congressman Michael C. Burgess, M.D. 26th District of Texas

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Social Security & Entitlements

Social Security has provided retirement security for tens of millions of Americans for over 65 years. Four generations of Americans have relied on the promise that Social Security would supplement their retirement income. The challenge we face today is ensuring that the Social Security system is strengthened for tomorrow's retirees, while protecting seniors’ current benefits.

During the first few years of the program, life expectancy was an additional 12 years for men and 13 years for women after the age of 65. By 2075, the remaining life expectancy at age 65 is projected to be 20 years for men and 23 years for women. As a result, people are spending a growing proportion of their lives in retirement, adding additional years of benefit payments, and a dramatic long-term increase in government obligations. Additionally, the decline in fertility rates among Americans means there will be fewer workers available to support each retiree once the baby boom generation starts to retire. With declining birth rates and increasing life expectancy, the ratio of workers to Social Security beneficiaries is expected to shrink from 5:1 in 1960 to 3:4 today to 2:1 in 2030. These trends will strain the government’s ability to make benefit payments for future benefits under the current program rules.

The U.S. Congress must address this long-term financial crisis with all due haste. Allowing some individuals to keep a portion of their payroll taxes in personal retirement accounts will reduce the need for a rapidly growing government outlay by creating opportunities for younger workers to enjoy the fruits of higher rates of return in private equity markets. These personal retirement accounts must be built upon a core of individually controlled, voluntary personal retirement accounts that will augment the Social Security safety net. Reform based on personal accounts presents a tremendous new opportunity to enable individuals to build financial wealth and security, while reducing the twin problems of fiscal imbalance and generational inequity.

However, modernizing Social Security for some workers must not change existing benefits for current retirees or near-retirees, and it must preserve the disability and survivors' components of Social Security. The federal government itself must not invest Social Security funds in the private economy. Successful Social Security reform, which addresses both the long-term unfunded liability and the generational inequities, is critical to the survival of the program. Inaction on this important issue would simply mean leaving this problem for our children and grandchildren instead of addressing it for them now.

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Social Security Administration