The gamecock. (Columbia, S.C.) 1908-2006, April 06, 2005, Page 11, Image 11
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■ SOCIAL SECURITY
Continued from page 1
large segment of the population to
accumulate assets that would
otherwise not be available,” Kiker
said.
Lawmakers say it’s a good idea
— one that Democrats and
Republicans have researched in
previous years, including S.C. Sen.
Lindsey Graham, who called
private accounts “a vital part of the
solution mix for Social Security
reform” in a March news release.
The Republican National
Committee says the accounts will
provide younger workers with an
opportunity to receive greater
benefits than the current system
can afford to pay and create a fund
for retirement that the government
cannot take away.
l ne maiviauai retirement
accounts are voluntary. I would
expect most young workers to opt
for them. If a worker dies, the
account balance goes to his
beneficiaries,” Kiker said. “Under
the current system the
contributions may be lost.”
Citizens who do not wish to
participate would continue to draw
from traditional benefits, which still
need to be reformed in order to
have Social Security at all in the
future.
Kiker said the current system
could also be reformed by increasing
the retirement age accordingly
during the next 20 years — because
people live longer now than when
the program was begun by President
Franklin Delano Roosevelt in 1937
— while also maintaining an early
retirement option.
As the system stands today, the
RNC reports that, future
Congresses could be forced to
increase payroll taxes 50 percent
during the next 75 years to keep
distributing full benefits.
Otherwise, those benefits will have
to be cut significantly.
The SSA estimates two-thirds of
today’s retirees rely on Social
Security for more than half their
income and approximately 50
percent of recipients would be in
poverty without it.
Advocates of private accounts
also believe they will offer each
individual more control over their
money, and, to Danko, the
prospect of seeing more of his own
tax dollars come back to him is a
welcome substitute to^iooting a
potentially large welfare bill for
several retirees right now and seeing
nothing in return down the line.
Social Security payroll taxes also
provide support to citizens who are
survivors of families in which the
primary wage-earner dies or to
those who have disabilities.
“Not only will the accounts
promote individual responsibility
and economic literacy among
Americans, they allow a person the
satisfaction of seeing their money
work for them,” Danko said.
Kiker had a similar opinion
saying it seems clear to him that
younger Americans “would be
better off financially by
participating in the individual
accounts than they would under the
current system.”
Comments on this story? E-mail
gamecocknews@gwm.sc.edu
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