Public Policy Priorities: Economic Security

Social Security benefits, income from pensions and savings, the option of working, and basic financial protections—these are all important elements of economic security.

Social Security

Social Security is the most basic part of retirement security. It provides the most income to the most people with the least amount of risk—you can’t outlive it, and it keeps up with inflation.

Although it was never meant to cover all our retirement needs, for many, Social Security has become the primary source of retirement income.

Of course, Social Security isn’t just for retirement. It also provides valuable disability and survivors’ benefits. These protections are especially important for young working families, who may not have employer-provided disability or life insurance.

Social Security is not in crisis. The program will remain strong and solvent for a good while longer. It can pay full benefits until 2042 and 70 percent of benefits after that. But that’s not good enough.

The program will have to change if it is to stay strong well into the future.

AARP believes that Congress and the president should act now to address Social Security’s long-term solvency. The sooner the changes are made, the more modest the changes can be and the more time people will have to adjust their financial plans.

But not all of the ideas being discussed are good ideas. Some propose diverting part of the money that goes to Social Security and putting it into individual investment accounts. These accounts would worsen Social Security’s finances, reduce part of its guaranteed benefits, and add risk. AARP supports the idea of people having personal retirement accounts, but they should be in addition to, not a replacement for, any of the benefits now guaranteed through Social Security.

Pensions and Savings

Social Security was never intended to be the only source of retirement income—by itself, Social Security isn’t enough. We all need to save for retirement, and we need to have secure and reliable ways of doing so. But about half of all working Americans do not have a pension. Most boomers haven’t saved nearly enough to meet their retirement needs.

The country needs a stronger pension system and more options for private savings, especially for low-income and middle-income individuals and families. There should be more employer pensions available, more workers attracted to them, and fair ways of treating older workers who have long been paying into pension systems.

The Option of Working

Many people will want or need to keep working beyond the traditional retirement age. But they may need new, more flexible work options. And as they age, they may face age discrimination on the job.

AARP opposes any and all forms of age discrimination. No one should be denied a job, laid off, or passed over for better work assignments because of their age. We believe that older workers should be judged only on the basis of their own competency, ability, and physical condition in relation to the job at hand.

Security from Financial Harm

Sometimes older people are targeted for financial fraud and scams. For anyone, financial fraud can erode retirement savings and assets. It can also be a disaster for retired people with limited means.

State and federal regulators need to do a better job of protecting consumers against "predatory" home lending practices, such as unreasonable prepayment penalties, excessive interest rates and fees, and frequent refinancing ("loan flipping") that has no benefit to the consumer. Consumers should be protected from unfair and deceptive practices when their home serves as the collateral for a loan.

Affordable, Reliable Utilities

In this age of information, older people need to stay connected for health, social, and emergency reasons; they need reliable, affordable basic phone service. And they need home energy—to stay comfortable but also to be safe from extreme weather in winter and summer.

AARP believes that even in a competitive market, there must be affordable energy and telecommunications services available to everyone.

People deserve to haveeasy access to information in order to make good choices, and they should have rights that they can exercise if they are threatened with getting their service cut off. Rates should be just, reasonable, and affordable. There should be programs to provide people in low-income households with assistance in paying for these necessary services. And competition for utility services should exist before policymakers deregulate that service.

Read more about other AARP priorities:
Health Care and Supportive Services
Livable Communities