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Compliance January 29, 2004
AARP Denounces Social Security Proposals
January 29, 2004 (PLANSPONSOR.com) - 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.
Reported by Eric Hazard
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.