The BCTGM strongly favors personal savings for retirement and has fought for savings plans in the workplace. Savings/investments are an important component in retirement income, the others being Social Security and pensions.

But Social Security is under attack today. Big Business and conservative interest groups that oppose Social Security are proposing radical “privatization” plans that would cut benefits, cut annual cost of living adjustments and raise the retirement age in order to divert Social Security tax dollars and the trust fund into risky privatized individual accounts. You would be required to invest your money in the stock market. Some proposed benefit cuts are as high as 20, 30 and even 40 percent, depending on your age.

Privatization of Social Security would make the system work more like savings accounts. Instead of pooling resources to protect each other, workers would invest their payroll taxes individually, in personal accounts similar to IRAs, or 401(k)s.

That's not all. The advocates of Social Security privatization plans claim their benefit cuts won't hurt anybody. They tell people that the stock market accounts will make up the difference.

The benefit cuts from privatization are much larger than any money that might be earned in an individual account. All of the family-protection benefits for spouses, widows and widowers and children also are lost or suffer large benefit cuts. Privatized accounts do not have annual cost of living adjustments.

All in all, privatization is a bad idea. Older and retired Americans and working families need a strong Social Security system that will provide guaranteed benefits and protect families for life.

Contact Congress TODAY!

Why does the BCTGM oppose privatization?

Is Social Security “Broke”?

How Does the Social Security Trust Fund Work?

How Will Social Security Pay Benefits in the Future?

Links & Resources