Wednesday November 26, 2008
Social Security
|
| Older Americans Act |
| Action On Seniors |
See also:Social Security has been an important, successful program for over 65 years, providing benefits to millions of senior citizens and the disabled. Presently approximately 50.4 million people are enrolled in Social Security. However, I also recognize that Social Security must remain a system on which our children and grandchildren can depend. In recent years, there has been widespread acknowledgement that the long-term health of the Social Security system must be addressed. Accordingly, a national discussion has evolved as to the future of Social Security. As a member of the Senate Finance Committee, I will be closely involved in monitoring Social Security and working on ways to improve and strengthen the system that we have.
Our first and foremost concern in this effort is to maintain the promises we have made to protect current recipients, while strengthening the system in order to guarantee benefits for future retirees. The seeds for the current debate date back to the mid-1970s when it became apparent that changing economic and demographic circumstances would strain the financial condition of the existing system. In 1950, sixteen workers paid into the system for every one individual receiving benefits. Today, that ratio has shrunk to just three to one. When our children retire, the ratio will fall to just two workers per beneficiary.
In addition, life expectancy has increased.When Social Security was created, benefits were paid at age sixty-five. However, average life expectancy was only sixty years. Today, we are living longer, healthier lives. While this is undoubtedly good news, the combination of falling birthrates, increasing life expectancies and the retirement of the Baby Boomers is creating tremendous pressure on the Social Security system.
While current Social Security retirement benefits are secure, in a little over a decade the source of these benefits will begin to show deficits. By 2010, federal health care and education programs will come under intense financial pressure as current Social Security surplus monies will no longer be made available for government spending. By 2018, Social Security will be paying out more than it is taking in. Substantial deficits in the Social Security program will continue, and by 2042, the system will approach bankruptcy. If we wait to address the problem at that point, the only solutions will be substantial tax increases, massive new borrowing or large cuts in Social Security benefits or other government programs. It would be easy to turn away and leave the tough decisions to others, but we owe it to current and future workers to address the problem now. In fact, according to the Social Security Administration, each year of inaction increases the bill to the next generation by $600 billion. I wholeheartedly agree that Congress must take up the responsibility to secure Social Security for our children and grandchildren.
 |