Americans have come to realize that Social Security faces serious financial problems that are only going to get worse. This public concern is well grounded. Studies and official reports confirm that Social Security is approaching a major financial crisis, and even if its revenue and expenditures were in long-term balance, the program is providing poorer and poorer retirement income security for the money Americans contribute. Younger workers are especially aware that Social Security will not be able to provide the benefits they have been promised when they retire. However, unless changes are made soon, it may not be able to provide the same level of benefits to our children and grandchildren as it paid to our mothers and grandmothers.
Reform is about giving people choice.
It is very simple to save and improve Social Security's retirement and survivors programs without making any changes to today's disability program. Under reform, women would have the choice of remaining in today's Social Security or moving into a Social Security Part B, which includes a combination of government funded benefits and a personal retirement account. This is not a new or revolutionary idea. Social Security systems with personal retirement accounts exist in Great Britain, Australia, Sweden, Hungary, Denmark, Mexico, Chile and a host of other countries. In each case, the reformed strengthened the nation's social insurance system.