Article, CNN.com, April 18
http://money.cnn.com/2005/04/18/news/economy/bush_retirement.reut/index.htmPresident George Bush gave a speech in South Carolina which outlined some of his hopes for Social Security reform. He warned those in the audience that Social Security in its current incarnation is teetering on the brink of insolvency. He mentioned that with the retirement of the first wave of baby boomers in approximately 3 years, the current system would start to unravel.
"By 2034 the annual shortfall will be more than $300 billion and by the year 2041 the entire system will be bankrupt," Bush said.
Bush told the audience that a number of proposals for social security reform were on the table, and that he would consider anything that could alleviate the current situation. He mentioned that one possible solution was to raise the age in which people would start receiving their benefits. He also mentioned that restructuring benefits to help lower income seniors was also on the table.
Bush ultimately wants to create regulated private retirement accounts which encourage savings and investment. A higher nationwide savings rate would ultimately help the long-term economy much more that the current system.
