Our Social Security system represents a very important commitment to our senior citizens, but unfortunately it is on the verge of collapse. We must act now to avoid a catastrophe in the future.

Due to our aging society and increased life expectancy, our current Social Security system is facing a funding crisis.  If the Social Security system is not fundamentally reformed,  large tax increases, huge benefit cuts, massive government borrowing or a combination of all three will no doubt ensue. We can ill-afford any of these choices, and the system must be  fundamentally reformed.  With the impending retirement of millions of the “baby-boomer” generation, we must act now if we are to ensure that this vital program will be solvent for future retirees.

Many people believe that the current Social Security Trust Fund is a real pension fund where individual contributions are saved and invested for their retirement. Unfortunately, Social Security was not established to be a fully funded pension program and therefore it contains no real assets. The system operates by using the taxes of our current workforce to support today’s retired beneficiaries, hoping that each generation that follows will do the same. This model worked well when there were 40 workers for every retiree, but today there are less than three workers for every retiree. American retirees and taxpayers deserve something better.

Hal Jordan, along with others, advocates the creation of personal Social Security savings accounts. These accounts would give younger workers the opportunity to invest conservatively and control their financial future, so that they will not be dependent on the government for a meager check when they retire. Personal Social Security savings accounts will encourage younger American workers to save and invest.

Lastly, since its creation over 40 years ago, Medicare has served as the cornerstone on which all other government health programs rest. Unfortunately, the deteriorating financial conditions of this program are threatening its long term viability. Based on current projections, Medicare will be insolvent by 2019. At the same time, other government health programs are growing at unsustainable rates and threatening to overrun many state budgets. If left unreformed, these healthcare costs will impose a crushing financial burden on our economy and fail to provide core benefits to those in greatest need.  Congress must address the skyrocketing costs of healthcare and propose ways to put the Medicare program back on the path of long-term fiscal sustainability.

Each passing year that we refuse to address these problems makes the solution increasingly expensive. It is imperative to reconsider the funding approach for Medicare and Social Security, and modify the eligibility requirements for those who are still many years away from retirement.  Otherwise, we will not be able to protect these important programs for future retirees.