That commission expanded the plan to cover federal employees and instituted a gradual retirement age increase from 65 to 67. Social Security is expected to start paying out more than it collects by 2016 because of an influx of baby boom retirees. The program is expected to run out of cash after 2038. Bush has proposed shoring up the program by letting younger workers voluntarily invest some of their payroll taxes in private accounts, arguing that over time the stock market will provide a much greater return. AARP, formerly the American Association of Retired Persons, condemned Bush's plan and the commission.
Opponents point to recent stock market volatility as a reason against such accounts.
They also say the private accounts would drain too much money from the program. The annual costs of benefits will exceed revenues from Social Security wage taxes beginning in 2016. Today there are 3.4 workers paying wage taxes to support benefits for each Social Security beneficiary. By 2030 there will be only 2.1 workers for each beneficiary. Nine out of 10 people 65 and older receive Social Security benefits.