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Poll Finds Young Adults Reject Privatizing Social Security
A new poll shows that nearly 60 percent of 18-39 year olds oppose private accounts if it would mean “a lower guaranteed benefit in retirement.” Similar to conclusions in previous polls, the more people know about privatization, the less likely they are to support it.
The poll, released by Rock the Vote, AARP and the Joint Center for Political and Economic Studies, reflects the perception found in other polls that many young people doubt they will receive Social Security. But more importantly, the results also show that though many younger adults are initially responsive to the idea of investing their own Social Security money, they no longer support privatization when they learn it means dramatically cutting benefits and increasing the national debt.
Findings of the poll among 18-39 year olds include:
Poll Finds Young Adults Reject Privatizing Social Security
February 4, 2005
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The poll, released by Rock the Vote, AARP and the Joint Center for Political and Economic Studies, reflects the perception found in other polls that many young people doubt they will receive Social Security. But more importantly, the results also show that though many younger adults are initially responsive to the idea of investing their own Social Security money, they no longer support privatization when they learn it means dramatically cutting benefits and increasing the national debt.
Findings of the poll among 18-39 year olds include:
- 63 percent would oppose private accounts if it meant “massive new federal debt in order to pay current benefits.” The plan commonly viewed as a “consensus” version from the President’s Social Security Commission, as the press has widely reported, would require $2.2 trillion in new borrowing over just the next ten years (and much more after that).
- 70 percent would oppose private accounts if it meant “cuts to your guaranteed benefits would be so severe that you could not make up the difference with money from your private account.” Many plans include a benefit cut that is so severe it will produce a net loss of income, on average, with a massive loss for people whose investments do not work out.
- 65 percent would oppose private accounts if it meant “changes in the way Social Security benefits are calculated would result in cuts in guaranteed benefits for everyone not just people who choose to participate in private accounts program.” Again, this is a critically important aspect of most privatization plans that has not received significant attention. While, as the President said in his State of the Union Address, the plans offer “voluntary personal retirement accounts,” the benefit cuts are mandatory for everyone, regardless of whether they choose to invest. For young people whose choice would be to stick with a guaranteed benefit, the plans exact a devastating price—cuts approaching 50% within their lifetimes.
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