INFORMATION YOU NEED TO KNOW ABOUT

THE CURRENT SOCIAL SECURITY DEBATE

Social Security is the most effective government program in our nation, providing benefits to 47 million Americans every month.  

• Social Security is the primary source of income for two-thirds of seniors, and the only source of income for one-fifth of seniors.   In Rhode Island , 18% of our residents depend on a monthly Social Security benefit, including retirees, disabled, and children.
• Social Security reduces the poverty gap for children by more than any other single program, including the Earned Income Tax Credit.
• Social Security is critical to women who typically live longer, earn less money, and generally spend less time in the labor force.
• Latinos and African Americans are more reliant on Social Security as they are less likely to be able to rely on pensions or other assets, and have higher rates of disability and death.  

The President's privatization plan would only make the problem worse and does nothing to improve the financial health of Social Security.

• It reduces Social Security's guaranteed benefits, even for people who decide not to set up private accounts.   Projections indicate guaranteed benefits could be cut by up to 40%.
• It puts these benefits at risk in the private market – the Las Vegas Plan.
• It saddles future generations with a huge burden of debt, over $2 trillion in the first decade.  

While we know Social Security will faces some challenges later in its future, there is no crisis .  

• The Social Security Administration's best guess is that it can pay full benefits until 2042 and at least 70% of benefits thereafter.   If the economy grows at historic levels, there is no Social Security shortfall at all.
• To put the problem in perspective, the entire Social Security shortfall over the next 75 years is about one-fifth the cost of the Bush tax cuts (if made permanent).

Congress should keep the promise of Social Security and take the small, common sense measures necessary to keep Social Security healthy without benefit cuts, risky private accounts or borrowing.

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