It’s Time to Reform Social Security

Reform Social Security

Published: Aug 18, 2002 in the Tampa Tribune

Regarding “Market Woes Cut Support For Social Security Reform” (Nation/World, Aug. 13):

The nation and Congress need to wake up to the unpleasant truth surrounding Social Security. In just 15 years Social Security will be broke. Because it’s a pay-as-you-go system, today’s tax dollars provide the benefits for today’s retirees. By the Social Security Administration’s own calculations, the system will start to spend more on benefits than it collects in taxes by 2016. Soon thereafter, retirees will either have to wait longer to retire or see their promised benefits dwindle, and those contributing to the system will possibly see their taxes increase to cover the deficit. There is a solution: Let individuals control their future retirement money and establish personal retirement accounts.

PRAs would allow Americans to divert a portion of the 12.4 percent payroll taxes they now pay into the Social Security system into secure investment accounts that they – not politicians – own and control. And because individuals own their accounts, unlike Social Security, Americans could pass on any unused funds to their family. This would give all working Americans the opportunity to create and build wealth while simultaneously upholding our promised benefits to current and near retirees.

As a nation, we must look now for ways to modernize our Social Security system to ensure that retirement is truly a “golden age” for everyone. I am a 34-year-old man who is extremely concerned about retirement. Why do I have to keep paying into Social Security for the next 35 years, only to find out there is no money for me to receive when I am 70? Personal retirement accounts are a step in the right direction.

Craigg Page Valrico