Personal Investment Acounts

Various proposals are currently being considered in Congress to strengthen the system with innovative reforms. One proposed method of addressing the Social Security system's problems is to allow workers the choice to place a percentage of the money taken out of their checks in payroll taxes into personal retirement accounts of their choosing.

Personal investment accounts would provide options that would allow younger workers the flexibility to plan for their retirement. Those who choose to participate in the program will have the opportunity to earn higher benefits through low-risk investments and economic growth. The account would be owned entirely by the worker, not the government. Under current law, Congress has the right to alter, amend or repeal any provision of Social Security. Personal accounts would allow the worker the choice to control his or her hard-earned money, and would be an asset that could be passed on to future generations. Americans should have the right to control their retirement security. Replacing a portion of the government-run system with voluntary personal retirement accounts managed by individuals certainly has merits and needs to be considered, along with many other proposals, as a viable option.

The Senate Finance Committee, of which I am a member, continues to hold hearings on the state of the Social Security system and the ways it can be improved to ensure a safe, secure retirement for current and future retirees. I look forward to an open, honest exchange of ideas and views from all sides of the issue.

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