Everything You Wanted to Know About Social Security But Were Too Busy to Ask
If you're like most Americans, you believe Social Security is a promise that should not be broken. However, despite wide support for Social Security among all age groups and political affiliations, some policy makers in Washington are proposing Social Security benefit cuts. These so-called "fiscal hawks" have suggested cutting Social Security will show America is "serious" about fixing the fiscal mess created by a decade of failed economic policies, despite the fact that Social Security has not contributed one thin dime to the deficit.
The President's Fiscal Commission, which will report its findings in December after the mid-term Congressional elections, is stacked with deficit hawks who have repeatedly called for cuts to Social Security in the past. In order to correct misinformation about Social Security, its funding and our current fiscal crisis, the National Committee to Preserve Social Security and Medicare has compiled an advocacy guide to help individuals to understand the Social Security program, recognize how proposed changes like raising the retirement age are really benefit cuts in disguise, and learn the facts about Social Security.
What Americans Think About Social Security :
Did you know that 96% of Americans agree that Social Security money belongs to the people who contribute and to their beneficiaries? Also , Americans do not believe Social Security is a major cause of the deficit � it was only cited by 2% of Americans as the primary cause of the deficit. Americans are widely opposed to cuts in Social Security benefits with 78% oppose raising the retirement age. Visit our website to see the rest of the results of our bipartisan poll on Social Security.
Social Security Myths:
Myth 1: "The cost of Social Security is a burden to our grandchildren"
The truth: Social Security costs are expected to grow only slightly as a share of the U.S. economy and will remain quite manageable. As a proportion of the Gross Domestic Product (GDP),Social Security costs are projected to rise from under 5% in 2009 to just over 6% in 2034 and then drop back down to only 5.8% by 2050. Traditional pension plans have all but disappeared. Only about one half of all Americans have access to a retirement plan, such as a 401(k), at work. And those who are saving have a median account balance of $70,000 in their plans as they approach retirement. It is clear our children and grandchildren will need Social Security more than ever when they are ready to retire. They can't afford not to have a Social Security program.
Myth 2: "Social Security will soon go bankrupt"
The truth: If Congress does nothing - makes no changes at all - Social Security is projected to deliver full guaranteed benefits until at least 2037. Even after 2037, again without any changes, the trust funds will continue to pay 78% of benefits for decades into the future. The program was adjusted in 1983 to prepare for the baby boomer bulge. To date, Social Security has paid benefits in full and on time for nearly 75 years. If Congress enacts modest changes, Social Security will be able to meet 100% of its benefit obligations indefinitely. As one of the most successful government programs ever, the administrative costs to run it - less than 2% - are far below what Wall Street will ever charge investors for private retirement accounts.
Myth 3: "The Social Security Trust Fund is full of worthless IOUs"
The truth: Social Security's surplus is invested in American government securities. Like other government bonds, they are backed by the full faith and credit of the United States . That means that as long as the government is around, it is obligated to pay both principal and interest on its securities. The federal government has never defaulted on its bonds, which are considered one of the safest choices in an investment portfolio. The Social Security Administration provides more details on the Trust Fund here .
MUCH MUCH MORE...
http://www.ncpssm.org/news/archive/ss_toolbox/
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