Issue Position: Retirement Security

Issue Position

By:  Edward Kennedy, Sr.
Location: Unknown

Issue Position: Retirement Security

Americans are confronting an uncertain future when it comes to their retirement and savings. The three-legged stool that represents retirement security - Social Security, employee pensions and private savings - is under attack by the irresponsible policies of the current administration.

President Bush's plan to privatize Social Security would drastically cut benefits for millions of seniors and disabled Americans, and would leave this guaranteed benefit vulnerable to the ups and downs of the stock market.

In the past, workers could rely on pension plans for guaranteed security in retirement. But today, this assurance no longer exists as more and more companies default on their pension plans, putting millions of Americans at risk. Compounding the severity of the situation, the Pension Benefit Guaranty Corp., the government insurer created to secure workers some benefits if their employer goes bankrupt, is facing a deficit of nearly $30 billion.

Finally, personal savings continue to decrease as the cost of living rises. Health care costs and gas prices continue to skyrocket while wages remain flat. In addition, the value of the minimum wage is at its lowest point since the 1950s and more and more Americans find themselves living below the poverty line. All these factors force families to reduce the amount they save.

Americans deserve policies that will protect their hard-earned pensions and savings - in good times and bad.