Americans oppose privatization of Social Security
The Pew Research Center for the People and the Press finds that while a growing number of Americans consider the fiscal health of Social Security a top priority, the public is split over the current condition of the program. Nearly half (47%) believe it works pretty well and needs only minor changes; 34% think major changes are required; and only 15% say the Social Security system has to be completely rebuilt. In other words, most Americans do not seem to agree with the proposal for privatization of Social Security.
This is not surprising since most Americans don't appear to be as concerned about their personal finances and retirement as perhaps they should be, according to another national survey by Nationwide, a leading provider of diversified insurance and financial services. Americans also do not appear to pay as much attention as they should to financial/retirmenet planning issues. When Washington is going crazy talking about Social Security privatization, Americans are more focused on the divorce of Brad Pitt and Jennifer Aniston.
In December, the Pew Research Center asked respondents how much they had heard about a proposal that would allow younger workers to invest some of their Social Security taxes in private retirements accounts, including stocks or mutual funds. Only about a quarter of Americans (23%) said they had heard a lot about the proposal, and another 43% said they had heard a little.
The belief that Social Security is in need of fundamental change is most evident among people in their 30s and 40s. Nearly six-in-ten (57%) believe the system needs major changes (40%) or to be completely rebuilt (17%). Younger people those age 30 and under are less persuaded of the need for a major overhaul of Social Security. As expected, senior citizens generally believe the system works pretty well as it is; just 34% say it needs major changes or to be completely rebuilt. (Related article: AARP strongly opposes privatization of Social Security)
Experts believe that younger Americans, who are still awed by the fact that some people that they know became filthy rich during the stock market boom of the 90s, believe that they can do the same if they had access to their retirement savings and online trading account.
There are no significant political or ideological differences in opinions on the state of Social Security about half of Democrats (50%) and Republicans (48%) believe the program works well and needs only minor changes. Pluralities of liberal Democrats (48%) and conservative Republicans (45%) also share that view.
Most Americans Favor Keeping Guaranteed Benefit
Opinion is much more partisan about the idea of introducing private investment accounts into the Social Security program. But, attitudes on this issue also are highly dependent on how the proposal is framed. In summary, when the concept of investment risk is introduced, greater than two-to-one (65%-29%), the public believes it is more important to keep Social Security as a guaranteed monthly benefit rather than it is to allow younger workers to invest some of their contributions, which may cause benefits to increase or decrease depending on how well they do. Support for a guaranteed monthly benefit has grown since fall 2000, when 54% supported this option. (Related article: Privatization of Social Security may hurt baby boomers)
This all makese sense since the U.S. personal savings rate is near record lows and Americans will need Social Security benefits to get through their final years. Numbers from the Commerce Department show households saving just 0.1 percent of their disposable income last October -- one of the lowest rates recorded since tracking began in 1959. Moreover, despite the rise of 401(k) plans, less than half of workers are covered by any type of pension plan, and of those eligible, one in four don't participate. Fewer than 10 percent contribute the maximum amount permitted.
"While it may be easy to know what to do in theory to plan for the future, putting that knowledge into practice can be much more difficult," said Gordon Hecker, vice president and chief marketing officer for Nationwide's financial services company, Nationwide Financial.
Recommended article: Center on Budget & Policy opposes privatization of Social Security
This is not surprising since most Americans don't appear to be as concerned about their personal finances and retirement as perhaps they should be, according to another national survey by Nationwide, a leading provider of diversified insurance and financial services. Americans also do not appear to pay as much attention as they should to financial/retirmenet planning issues. When Washington is going crazy talking about Social Security privatization, Americans are more focused on the divorce of Brad Pitt and Jennifer Aniston.
In December, the Pew Research Center asked respondents how much they had heard about a proposal that would allow younger workers to invest some of their Social Security taxes in private retirements accounts, including stocks or mutual funds. Only about a quarter of Americans (23%) said they had heard a lot about the proposal, and another 43% said they had heard a little.
The belief that Social Security is in need of fundamental change is most evident among people in their 30s and 40s. Nearly six-in-ten (57%) believe the system needs major changes (40%) or to be completely rebuilt (17%). Younger people those age 30 and under are less persuaded of the need for a major overhaul of Social Security. As expected, senior citizens generally believe the system works pretty well as it is; just 34% say it needs major changes or to be completely rebuilt. (Related article: AARP strongly opposes privatization of Social Security)
Experts believe that younger Americans, who are still awed by the fact that some people that they know became filthy rich during the stock market boom of the 90s, believe that they can do the same if they had access to their retirement savings and online trading account.
There are no significant political or ideological differences in opinions on the state of Social Security about half of Democrats (50%) and Republicans (48%) believe the program works well and needs only minor changes. Pluralities of liberal Democrats (48%) and conservative Republicans (45%) also share that view.
Most Americans Favor Keeping Guaranteed Benefit
Opinion is much more partisan about the idea of introducing private investment accounts into the Social Security program. But, attitudes on this issue also are highly dependent on how the proposal is framed. In summary, when the concept of investment risk is introduced, greater than two-to-one (65%-29%), the public believes it is more important to keep Social Security as a guaranteed monthly benefit rather than it is to allow younger workers to invest some of their contributions, which may cause benefits to increase or decrease depending on how well they do. Support for a guaranteed monthly benefit has grown since fall 2000, when 54% supported this option. (Related article: Privatization of Social Security may hurt baby boomers)
This all makese sense since the U.S. personal savings rate is near record lows and Americans will need Social Security benefits to get through their final years. Numbers from the Commerce Department show households saving just 0.1 percent of their disposable income last October -- one of the lowest rates recorded since tracking began in 1959. Moreover, despite the rise of 401(k) plans, less than half of workers are covered by any type of pension plan, and of those eligible, one in four don't participate. Fewer than 10 percent contribute the maximum amount permitted.
"While it may be easy to know what to do in theory to plan for the future, putting that knowledge into practice can be much more difficult," said Gordon Hecker, vice president and chief marketing officer for Nationwide's financial services company, Nationwide Financial.
Recommended article: Center on Budget & Policy opposes privatization of Social Security
posted by eCreativa Media @ 1:26 PM
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