Saving Social Security

Introduction

America's 76 million baby boomers pose a catastrophic threat to the nation's social safety net. Simply put, the Social Security system won't take in enough money to pay all of the boomers' guaranteed benefits as they retire over the next 30 years. To meet these obligations, the government will either have to raise workers' payroll taxes, cut benefits or take more drastic steps, such as raising the retirement age. A growing number of policy-makers are embracing calls to “privatize” the system and shift some payroll taxes to private retirement accounts. But a consensus is proving elusive, particularly as President Clinton struggles with his legal problems and financial markets fluctuate due to problems in Russia and Asia.

Retired law clerk Ida Mae Fuller of Ludlow, Vt., received ...