What Is the Problem with Social Security?
America's Social Security program is in trouble.  As more Americans retire and life expectancy increases, it is becoming harder for working Americans to sustain the burden of rising Social Security costs.  Within the next 12 years, Social Security won't be able to collect enough money in payroll taxes to cover the benefits it pays to retirees.

In 1950, every retiree who drew Social Security benefits was supported by 16 workers paying Social Security taxes.  Today, there are only 3 workers supporting each retiree.  Congress has tried to address the difference by raising Social Security taxes more than 40 times, but the situation is only getting worse.  It is clear that, without significant cuts to retirement benefits or major payroll tax increases, the current Social Security system won't last.

What Is the Solution?
Generations Together supports modernizing Social Security through personal retirement accounts.  This plan would allow younger workers to invest part of their Social Security payroll taxes in bonds, stocks, funds, or other assets.  Personal retirement accounts offer a way to fix Social Security that simultaneously helps young workers prepare for retirement and ensures that benefits do not change for retirees and near-retirement workers.

How Will Personal Retirement Accounts Affect Me?
Personal retirement accounts are the perfect solution to the problems with the current Social Security system.  Whether or not you actually begin saving in a personal retirement account, chances are you'll benefit from Social Security modernization:

  • For younger workers, personal retirement accounts offer the ability to start preparing for retirement early, to take personal ownership of retirement funds, and to build a healthy "nest egg" for the future.
  • For workers nearing retirement and current retirees, the Social Security system will continue to pay full benefits.
  Will your retirement benefits be secure? Find out how personal retirement accounts will affect Social Security for you, your children, and your grandchildren.  
  What do voluntary personal retirement accounts mean for Americans who are approaching retirement? Find out what Social Security reform will mean for you.  
  Will Social Security be there for you? How can personal retirement accounts help you prepare for the future? Find out how Social Security reform can help ensure your retirement security.  
The average monthly retirement benefit in 2003 was $879.70. Without personal retirement accounts, "fixing" Social Security could mean benefit cuts of nearly 30 percent.

Eight in ten Americans pay more in Social Security taxes than they do in federal income tax.

There's no guarantee that you'll receive any Social Security benefits when you retire. In Fleming v. Nestor , the Supreme Court ruled that taxpayers have no legal right to retirement benefits.

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