Social Security: Time for Reform?

Focus on the Family believes one of the most important responsibilities one generation has to the next is to leave it a stable national economy.

Speaking of the need for Social Security reform, President George W. Bush said the following in his February 2005 State of the Union address:

Our society has changed in ways the founders of Social Security could not have foreseen. In today's world, people are living longer and, therefore, drawing benefits longer. And those benefits are scheduled to rise dramatically over the next few decades. And instead of sixteen workers paying in for every beneficiary, right now it's only about three workers. And over the next few decades that number will fall to just two workers per beneficiary. With each passing year, fewer workers are paying ever-higher benefits to an ever-larger number of retirees.

So here is the result: Thirteen years from now, in 2018, Social Security will be paying out more than it takes in. And every year afterward will bring a new shortfall, bigger than the year before. For example, in the year 2027, the government will somehow have to come up with an extra $200 billion to keep the system afloat -- and by 2033, the annual shortfall would be more than $300 billion. By the year 2042, the entire system would be exhausted and bankrupt. If steps are not taken to avert that outcome, the only solutions would be dramatically higher taxes, massive new borrowing, or sudden and severe cuts in Social Security benefits or other government programs.

... If you have a five-year-old, you're already concerned about how you'll pay for college tuition 13 years down the road. If you've got children in their 20s, as some of us do, the idea of Social Security collapsing before they retire does not seem like a small matter.¹

Focus on the Family believes one of the most important responsibilities one generation has to the next is to leave it a stable national economy. As President Bush said in his State of the Union speech, our nation's demographic make up has changed dramatically since the era when the Social Security was implemented. Clearly, if we want to leave our children and grandchildren a nation undergirded by a sound economy, Social Security, the nation's largest entitlement program, will need help.

Learn more about Social Security reform by reading the Heritage Foundation's (one page) "Issues 2004: Social Security" or the Cato Institute's (nine page) "FAQ on Social Security."

Related article: The Earth's Population: What is the Real Problem?

Also visit Focus Over Fifty to learn much more about preparing for your retirement years.

If you enjoy reading stories like this one, sign up for the free CitizenLink Daily Update e-mail. You'll get news and commentary from Focus on the Family Action delivered right to your computer.