Issue Position: Social Security

Issue Position

Social Security is the most successful retirement program in history of the world. It was founded on a promise: if you work in America, America will guarantee you a solid foundation for retirement.

In 1937, when Social Security began, more senior citizens lived in poverty than any other age group. Today, seniors have the lowest poverty rate of any population in America. Nevertheless, without Social Security, fifty percent of seniors would sink below the poverty line. Congresswoman DeLauro believes that preserving Social Security is part of our moral duty to keep retired Americans from falling into poverty.

Opposing Privatization of Social Security

Plans to partially privatize Social Security would undermine retirement security by cutting guaranteed benefits over 40% for future retirees, even for those who don't choose an account. Risky privatization accounts won't make up the difference. Such accounts would take nearly $5 trillion from Social Security over 20 years, and jeopardize benefits earned by current retirees, disabled workers and children who have lost a parent. Today, the average monthly benefit is $1069.20, and without this money, nearly half of American seniors would be living in poverty.

Beyond the basic benefit of Social Security, Americans should be encouraged to seek a comfortable retirement based on savings and a balanced portfolio of investments. That is why IRAs, 401(k)s, and similar incentives for retirement savings are critical. But any sound retirement plan starts with the guaranteed benefits of Social Security.

Social Security Faces Long-Term Challenges, but There Is No Crisis

Even if we do nothing, Social Security could pay the full benefits promised by its present formula until at least 2036--and pay very substantial benefits thereafter. With a few modest changes, Social Security can be easily preserved for today's young people. Congresswoman DeLauro is working with others in Congress to draft some simple adjustments to Social Security that will ensure its solvency for generations to come.

Keeping the Promise

Social Security was always meant to be the bedrock of a balanced retirement plan. It guarantees Americans a dignified retirement, even if pensions, investments, and savings fail. Privatization would eliminate the last secure pillar of retirement in America. Congresswoman DeLauro believes that we must encourage Americans of all ages to save more of their income for the future. However, these efforts must complement Social Security, not threaten it.

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