AOL Members Send Clear Message to Policymakers and Business Leaders Gathered for June 4-5 National Summit on Retirement Savings:
Business Wire - June 04, 1998 12:59
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DULLES, Va.--(BUSINESS WIRE)--June 4, 1998--
"Let Us Invest Our Own Contributions"
As the National Summit on Retirement Savings begins its work today, America Online released a poll showing that an overwhelming majority of more than 2,900 AOL members who responded to an AOL News survey would like to see substantial changes in the Social Security system.
Given the choice between maintaining the current Social Security system, diverting some money into a 401(k) or IRA or investing the Social Security contribution themselves, 82% wanted either to invest themselves or shift some money into a 401(k) or IRA.
Almost half (46 percent) of the poll's 2,943 respondents elected to invest the money themselves, while more than a third (36 percent) wanted some of their Social Security dollars to go into an IRA or 401(k). Seventeen percent of respondents supported continuing with the present system. The online poll was conducted from June 1-3.
It is estimated that in the year 2012, Social Security will begin paying out more in benefits than it collects in revenues. According to the Social Security Board of Trustees, the Social Security Trust Fund is at risk of becoming insolvent by the year 2029, when the gap between benefits and revenues is projected to exhaust the Trust Fund's operating surplus.
Social Security operates by collecting revenues from today's workers to pay for the retirement of today's retirees. The looming demographic challenge is straightforward: A smaller work force will have to pay for the retirement of the Baby Boomers, who, not only make up the largest group of retirees ever, but are also living longer than previous generations.
In 1950, there were 16 workers for each Social Security beneficiary. That number has dropped to 3.3 workers per beneficiary today and will fall again to less than two workers for every Social Security beneficiary by the year 2025.
In the online poll, AOL asked its members to respond to the following question:
Retirement savings has become a matter of concern for senior citizens and young people alike. This week, a bipartisan and intergenerational commission meets in Washington, DC to begin a dialogue on how Americans should save for retirement. Many have expressed concern that the Social Security Trust Fund could become insolvent within a generation. Think tanks and the White House and Members of Congress have proposed reforms. They include everything from leaving things as they are to abolishing the current system in favor of allowing American workers to invest their own contributions. What would you prefer?
Allow me to invest my Social Security contribution.
Divert some of my taxes into a 401(k) or IRA.
Maintain the present Social Security System.
To access the poll results, go to AOL Keyword: NewsTalk.
Tonight, AOL Live to Host Online Discussion With Speaker Gingrich AOL Members will be able to ask House Speaker Newt Gingrich their questions about Social Security tonight during a Live online discussion (Keyword: AOL Live) beginning at 6:00 pm Eastern time.
Also participating in the discussion are Representative Charlie Stenholm; Henry Aaron, Senior Fellow at the Brookings Institution; and Carrie Brandon, a Member of the Board of Directors at Third Millennium.
America Online, Inc., based in Dulles, Va., is the world's leader in branded interactive services and content. America Online operates two worldwide Internet online services -- AOL and CompuServe -- as well as AOL Studios, the world's leading creator of original interactive content.
Other branded Internet services operated by America Online include AOL.COM, the world's most accessed Web site from home; Digital City, the nation's largest locally focused Internet online service; AOL Instant Messenger, an instant communication tool available to everyone on both AOL and the Internet; and AOL NetFind, AOL's comprehensive guide to the Internet.
CONTACT: America Online Inc.
Rich D'Amato or Jim Whitney, 703/265-1746
or
A2S2
Brian Ragan, 202/737-4900
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