Social Security is expected to start paying out more than it collects by 2016 because of an influx of baby boom retirees. The fund will 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 the stock market will provide a much greater return over time. AARP condemned Bush's plan and the commission. The commission may represent a missed opportunity because it lacks the balance of opinion that is essential for public credibility of its recommendations,'' said AARP Executive Director Horace Deets.
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. After the last six months in the stock market, I am shocked that the president would really be trying to move forward with this proposal,'' House Minority Leader Dick Gephardt said. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The views represented above are those of the author, and the information provided here does not constitute any tax, investment or legal advice.