AARP Denounces Social Security Proposals

January 29, 2004 ( - President Bush's plans allowing younger workers to invest a portion of their Social Security taxes in the stock market has an AARP leader up in arms.

The national organization representing interests of people over 50 said such a plan would hurt future retirees more than it would help.   That is because many workers have worked lower-paying jobs with fewer retirement benefits. Consequently, they depend more on Social Security in their retirement, Lavada DeSalles, AARP national director said in a Kansas City Star report.

Under Bush’s proposal, outlined in his State of the Union speech (See Bush Reviving Social Security Investment Proposal ),workers would have the option of receiving a smaller Social Security benefit when they retire that would be supplemented by earnings from investment accounts funded with their Social Security contributions.   The remark garnered a standing ovation from the crowd after its delivery.

The AARP is not buying it though.   In particular, the AARP says such a proposal would be especially unfair to blacks and other minorities.  

Rather, AARP favors strengthening the Social Security system by raising the current $87,000 ceiling on wages that are taxed and by bringing more currently exempted state and local government workers into the system to broaden its base.