2005-2-3
I'm Gwen Outen with the VOA Special English Economics Report.
One out of six Americans receive money from the Social Security
system. Monthly payments go to retired workers and disabled people
and to their survivors. Two-thirds of Americans age sixty-five and
older depend on Social Security for at least half the money they
get.
The system is financed mostly by a twelve-point-four percent wage
tax shared by workers and employers. This year, close to fifty
million people will receive more than five hundred thousand million
dollars in benefits.
But, in his State of the Union speech Wednesday night, President
Bush said: "With each passing year, fewer workers are paying
ever-higher benefits to an ever-larger number of retirees." Thirteen
years from now, he said, Social Security will be paying out more
than it takes in. In his words: "We must pass reforms that solve the
financial problems of Social Security once and for all."
His proposals face resistance, not only from opposition Democrats
but also some Republicans. It is often said that politicians risk
political death if they touch Social Security. Experts say any
changes will probably reduce future benefits. Yet no one can even
know what the population will be like years from now.
The president said the system will not change for Americans now
age fifty-five or older. But he warned younger workers that Social
Security would be out of money by two thousand forty-two. As he said
that, Democrats in Congress shouted "no, no, no." Mister Bush said
the only solutions would be higher taxes, new borrowing or "sudden
and severe cuts."
He said the best way to make the system better for younger
workers is through voluntary personal retirement accounts. He said
the plan would permit workers to set aside four percentage points of
the money they pay in Social Security taxes.
The money would be invested in what he called a "conservative mix
of bonds and stock funds." He said there would be ways to protect
investments from sudden changes in the market before a person is
about to retire.
But Democrats say younger workers could lose much of their
retirement savings.
A powerful group for older Americans, A.A.R.P., says it opposes
any major changes. It says public opinion studies show that most
Americans want Social Security to remain as it is.
Internet users can learn more about Social Security at
voaspecialenglish dot com.
This VOA Special English Economics Report was written by Mario
Ritter. I'm Gwen Outen.