Nest eggs can disappear in an instant - and take years ... curity is not an investment account, instead, it's insurance
When they say…
Social Security is going broke
Social Security is already in the red
The Truth is…
The National Committee’s position is…
The Social Security Trust Fund currently holds a $2.7 trillion surplus which is invested, sensibly, in one of the world's safest investment vehicles-U.S. Treasury notes. These notes represent the money borrowed by Congress to offset other government spending and the interest collected on that debt. The Trust Fund will be able to fund full benefits through 2036. After that, even if no changes are made, FICA contributions to Social Security will cover 77 percent of promised benefits.
The Trust Fund will be spent down (as planned) to cover the baby boomer generation’s benefits over the next 25 years. Congress will need to make modest and manageable changes to avoid any benefit cuts after that. Denying the Social Security Trust Fund’s existence is the same as denying the obligation of paying back the money American workers have contributed; real money owed to American retirees, the disabled and their survivors.
Social Security remains strong, despite the lingering effects of the recession and will be able to pay full benefits for the next 25 years - until 2036. The trust fund currently has a surplus of $2.7 trillion. This surplus is projected to grow until 2022, and at that time the balance in the trust funds is projected to be $3.7 trillion.
Ignoring the interest bearing bonds in the Social Security Trust Fund is another way fiscal hawks try to undermine the program by claiming the years of worker contributions are somehow not real. Those contributions are as real today as when workers paid into the system. The interest earned by these bonds are just as real and the bond debt must be repaid by Congress.
When they say…
The Truth is…
The National Committee’s position is…
Social Security
Social Security provides a guaranteed income, paying benefits every month for life, with increases for inflation. After adjusting for risk, Social Security has a rate of return equal to that of any mix of financial assets in private accounts. Private investment accounts are never guaranteed.
Younger workers deserve the same economic protection through Social Security that their parents and grandparents have received. Social Security is not an investment account, instead, it’s insurance – a buffer against the financial stresses and demands that most young adults and their families encounter.
private accounts are a better deal for younger workers
As we've seen in recent years, Wall Street can fluctuate wildly. Between 2001 and 2003, the NASDAQ lost 75% of its value. And the market took a major downturn again in 2008. Nest eggs can disappear in an instant - and take years
Social Security is
Social Security is not a Ponzi Scheme. This lie ignores all of the data and financial analysis provided by the Social Security Trustees and the Congressional Budget Office which shows Social Security is fully funded until at least 2036 and will pay 77 percent of benefits if no changes are made at all, which is highly unlikely.
a Ponzi scheme
For more than 75 years, Social Security has paid guaranteed monthly benefits to retirees, the disabled and their survivors. Private accounts will bring an end to that guarantee resulting in millions of Americans running the risk of extreme financial hardship or, even worse, falling below the poverty line.
People who claim Social Security is a “Ponzi Scheme” are in favor of a well-documented intergenerational warfare strategy designed to convince young people to give up their claim to Social Security. The truth is Social Security will be there for future generations if they continue to support protecting and improving benefits.
When they say…
The Truth is…
Social Security
There's no grey area here. Social Security was declared constitutional nearly 75 years ago. The Supreme Court decision describing Social Security’s constitutionality was issued in May 1937. The text of that decision, with dissents, is provided on the Social Security website.
Not only is Social Security constitutional but it also contributes to the well-being of Americans by providing a foundation of retirement income that permits seniors to live in dignity when they can no longer work.
Social Security did not contribute one dime to our nation’s deficit. The Social Security Trust Fund holds a $2.7 trillion surplus, and by law, cannot contribute to the deficit . Social Security is a pay-asyou-go program which has been selffunded by American workers not the federal government .
Those who say Social Security is responsible for our debt are trying to use Washington’s fiscal failures as an excuse for cutting a program that is in surplus and is fully funded for the next 25 years. Americans know they paid for Social Security and it belongs to the people, not the government.
is unconstitutional
Social Security is a driver of our national deficit
The National Committee’s position is…
In addition to retirement and spousal benefits, workers receive insurance protection that benefits workers and their dependents if the wage earner becomes disabled or dies. No other wagereplacement program - public or private - offers the protection Americans receive from the Social
When they say…
Health care reform hurts Medicare
People are living longer, therefore, we should increase the retirement age
The Truth is…
The National Committee’s position is…
The Affordable Care Act Health actually improves Medicare. Millions of seniors caught in the Part D donut hole have seen average annual prescription cost savings of over $600 per person. More than 24.2 million have received free preventive care including the new annual wellness visit. Medicare Advantage plans are prohibited from charging enrollees more than traditional Medicare for certain services. The Part B annual deductible decreased by $22 in 2012. And, the list goes on.
Medicare will become stronger and more affordable for both seniors and the federal government. Seniors will enjoy expanded benefits and better medical care.
While many older workers may be healthy enough to work, jobs for them may simply not exist. Although highincome professionals are often encouraged to continue working indefinitely, few employers are eager to employ 70year-old blue-collar or service workers. In fact, older workers are typically among the first targeted for buy-outs or reductions in force when the economy contracts, and are rarely recruited by other employers.
Raising the retirement age is a benefit cut. The effect of increasing the retirement age to 70, for example, would lead to an additional 13 to 15 percent reduction in benefits at 62. When added to the previously enacted benefit reductions for early retirement outlined above, the total reduction for a person who retires at age 62 could be as much as 43 to 45 percent.
