The State of the Union: Social Security
February 2, 2005 |
A short while ago President Bush finished his fourth State of the Union Address to the joint Congress and the country. He briefly outlined plans of action for the next year–and his final term as well. Bush also brought up his vision on a few of the key and contravention issues that will arrive in the next few years. The main topic, and the one I’ll focus on here, is Social Security.
As has been widely talked about in recent months, Social Security is on a downward path that will lead to eventual bankruptcy of the system. According to the Address, Social Security will bankrupt in 2048. The date it will be gone is beside the point. The point is that it will be gone by the time I am ready to retire. Something needs to be done and President Bush sees this. The democrats in the hall evidently are strongly opposed as when Bush mentioned this as he drew harsh reaction from that side of the isle.
Bush proposed “personal savings accounts” for people 55 and younger. The idea is that a portion of ones paycheck, gradual at the outset and up to 4% down the road, would be taken and placed into an account that is then invested in stocks and bonds. Bush said that the accounts would be protected against large fluctuations in the market. He also made a very smart political and strategic move in saying that this isn’t the only option and that in fact all options are on the table. Bush then went on to name prior senators and presidents various ideas.
I am a fan of these personal savings accounts. I am worried that when I am ready to retire I will be required to pay my own way and all the money that had been taken out of my checks will be for nothing. With a personal savings account I would be able to track the status and know that there is actually something there for me. I was also a fan that money in the account could be give to the owner’s children thus starting wealth in families.
Democrats are fundamentally opposed to this idea. They believe that it will cost too much to change Social Security and that it would ruin rewards benefits for older Americans. President Bush made it clear that Social Security would not be effected for Americans 55 and older. It seems as if the Democrats are just looking for something to fight over.
I am not saying that Bush’s Social Security plan is 100% correct nor am I 100% confident that it will get passed. But the being able to collect on Social Security when it is time for me to do so does worry me and the best option that I have heard to date is the personal savings account. The battle in congress will be bitter though, hopefully this will be something that is accomplished in Bush’s final term.
Linda
February 7th, 2005 | 4:00 pm
I totally agree with you! We should be more in charge of our own money! Why is it that Democrats are so set on spending our money for us? If they have too much, we should create a fund they can send their extra money to! But let the rest of us decide where to spend our own!! I know I could invest all the money I’ve spent on FICa and have done a lot better with it!!