3.25.2005

Bush administration and the Social Security administration not on the same page

A question posed on the Social Security web site wonders "Why can't I invest my Social Security taxes into an IRA plan?"

Question: I think I could do better if you let me invest the Social Security I pay into an Individual Retirement Plan (IRA) or some other investment plan. What do you think?

Answer: Maybe you could, but then again, maybe your investments wouldn't work out. Remember these facts:

-Your Social Security taxes pay for potential disability and survivors benefits as well as for retirement benefits;

-Social Security incorporates social goals - such as giving more protection to families and to low income workers - that are not part of private pension plans; and

-Social Security benefits are adjusted yearly for increases in the cost-of-living - a feature not present in many private plans.
After he was shown the passage on Thursday, a White House spokesman, Trent Duffy, said: "The president is not talking about this approach.

Apparently he isn't talking about any other approach in detail either except to say he wants to open up the possibility of allowing people to invest some of their money in the stock market. Can someone explain the difference to me?

No comments: