Listen To The Voters
By William D. Novelli, Chief Executive Officer
March 2007
When we stood together with the Business Roundtable and Service Employees International Union (SEIU) in January to launch Divided We Fail, we sent a powerful message to our nation's leaders: If we can come together to help all Americans obtain lifelong health and financial security, you can, too.
People are tired of political bickering. They sent a clear message in the fall elections that it must stop. They want our nation's leaders to put the people's interests above special interests and partisanship. People worry about their health and financial security; they don't worry about political advantage.
One of the most important steps we can take to help people achieve financial well-being is to fix Social Security's long-term solvency problem. The public places great value on the program. And while Americans continue to oppose creating private accounts out of Social Security, they welcome an open discussion of how the program can meet its long-term obligations without leaving our children and grandchildren with the bill.
Our 38 million members support bipartisan efforts to keep the promise of retirement security, which begins with Social Security. Nearly two-thirds of retirees rely on the program for most of their income, and nearly half of all Americans 65-plus, and especially women and minorities, would fall into poverty without it.
To retire comfortably, most workers should replace about 70 percent of their earnings. Currently about 40 percent (more for those with lower incomes and less for those with higher incomes) comes from Social Security, which people have paid into throughout their working lives. The other 30 percent comes from pensions and savings and by continuing to work. With growing numbers of employers freezing or shifting pensions, and with personal savings at 75-year lows, more people will have to work longer.
To revive the discussion on Social Security, our political leaders must look at all options that could lead to long-term solvency and adequate benefits, including those deemed too hot to handle in the past. A combination of several options will be required to fix the problem. Our research shows that people of both political parties and all age groups highly favor three: increasing the wage cap, increasing the payroll tax and changing the benefit formula [see chart]. They are open to other changes as well.We have a window of opportunity to strengthen Social Security before the next election if we can convince the nation's leaders that both parties have a vested interest in finding a solution. Democrats in Congress need to prove they can lead, and President Bush wants to leave a legacy of accomplishment. Making Social Security solvent for future generations would serve both causes.
And if a fair and bipartisan plan is developed, AARP would bring it to the public-in discussions all across the country-so that everyone could get involved.
So, let's urge our leaders to tackle Social Security now, not put it off until after the next election. And if the politicians insist on fighting, voters would prefer that they argue over who gets the credit for ensuring Social Security's solvency rather than who gets the blame for doing nothing.
