Bush warns of US pension crisis
 

US President George W Bush has said that the nation's social security fund is close to bankruptcy.
Mr Bush used his weekly radio address to warn that future generations of Americans may have to rely on private investments for a retirement income.

He urged younger workers to begin using private accounts to ease stress on the traditional state-run system.

Mr Bush has said reform is vital if big tax rises are to be avoided. Democrats and unions are opposed to the changes.

"If we do not act now, government will eventually be left with two choices: dramatically reduce benefits or impose a massive economically ruinous tax increase," Mr Bush said.

He said leaving such a situation to young Americans would be a "generational betrayal".

Solvency issues

Under the current US system, workers pay 6.2% of their monthly salary into the social security system and are paid out a weekly allowance when they retire.

Mr Bush is proposing that workers are allowed to divert up two-thirds of their payroll taxes into private accounts, with a cap on the total monthly amount invested.

Analysts say that the US's expanding elderly population, combined with a fall in the number of people of working age, means that fewer people are paying into the system even as more are taking out benefits.

US Social Security is on course to pay out more in benefits than it collects in payroll taxes by the year 2018, according to estimates.

In his address, Mr Bush said the system works for those near retirement and those already receiving their allowance.

"But for younger workers, Social Security is on the road to bankruptcy.

"And if we do not fix it now, the system will not be able to pay the benefits promised to our children and our grandchildren," he said.

Opposition Democrats disagreed with the president, asserting that private accounts will "weaken the solvency" of the social security program.

They say the president's plan would cost more than $2 trillion over its first 10 years.

http://news.bbc.co.uk/1/hi/world/americas/4178453.stm

We have the same problem here in Europe.
People just need to work longer.
We're getting older so we've to work longer too.

Funny, when Bush took office the Clinton admin had set aside $5 trillion (Social Security Lockbox) that was going to fix SS. Bush wanted his tax cuts so much all of that money was gone after his first year in office.

Now we suddenly have a Social Security crisis because the government cannot afford to continue paying the benefits. HUmmm, cut taxes = less money = less government can afford = no Social Security benefits. Ya Bush those tax cuts were great!

All of you idiots that were praising Bush for your tax cuts, that save you $5 a year, just remember that when you are ready to retire but there is no such thing as Social Security anymore. :1orglaugh

Tax cuts never killed Social Security. Those greedy fucks in government killed it. Quit blaming Bush for the stupidity and nearsightedness of congress. They've been dipping into it for decades.

so does this announcement coincide with that leaked internal white house memo from last week? It said the only way to get Americans to support Bush's SS plan was to scare them into think SS was going to fail?


notice the date on this article ...
http://www.voanews.com/english/2005-01-07-voa8.cfm

Clinton had it right and Bush and congress blew it bigtime. I feel sorry for anybody that is relying on the goverment when they retire

Social Security has been and always will be a giant Ponzi scheme. I do understand why the ocnept of a SS sytem was need in 1935. It's not needed now. People have investment option they didn't have 70 years ago. I'm sorry but if from 18-65 you don't bother saving anything for retirement you only have yourself to blame.

One day when you move out of your mother's house you will realize more than 90% of the population do not make enough money to pay monthly bills much less too save for retirement.

i guess now we have to wait with liberating cuba

I am surprised he is even coming forward with this since he is the one that fucking destroyed everything clinton did to fix the problem during his presidency. Now ask the middle class working joe why he voted for bush again... he had ss fucked up long before the election

Are you talking to me? Perhaps it's because they are giving 12.4% of their paychecks to granadma so she doesn't have to eat dog food. Sorry, but when I see people that eat out at McDonald's or buy beer and cigs then bitch about "not having any money to save for retirement" well that's just BS.

Yes that is what everyone who cannot afford retirement does with their money.

Thanks for showing how really ignorant you are, you just proved my point for me. :1orglaugh

When you grow up, you will understand better.