29/04/2005 9:34:45 am
Bush on Social Security Reform. US President George W Bush yesterday spoke about the Social Security reform. Public pensions levels will be reduced and private accounts created. President Bush desribed the challenge and made two commitments. Those pledges are far-reaching, but they are probably necessary in order to actually achieve a reform which already frightens many people:

"Today, there are about 40 million retirees receiving benefits. By the time all the baby boomers have retired, there will be more than 72 million retirees drawing Social Security benefits. ...

And to compound the problem, there are fewer people paying into the system. In 1950, there were 16 workers for every beneficiary; today there are 3.3 workers for every beneficiary. Soon there will be two workers for every beneficiary.

These changes have put Social Security on the path to bankruptcy. ...

First, millions of Americans depend on Social Security checks as a primary source of retirement income, so we must keep this promise to future retirees as well. As a matter of fairness, I propose that future generations receive benefits equal to or greater than the benefits today?s seniors get.

Secondly, I believe a reformed system should protect those who depend on Social Security the most. So I propose a Social Security system in the future where benefits for low-income workers will grow faster than benefits for people who are better off."

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