PRIVATIZATION MEANS DEEP CUTS FOR SENIORS

The assets accumulated in workers’ individual accounts would not make up for this drastic reduction in Social Security benefits. Indeed, under President Bush’s plan, workers who choose to have a portion of their payroll taxes diverted to individual accounts would have their Social Security benefits reduced even further to offset the amounts accumulated in their accounts. Thus, overall, seniors would still wind up with much lower retirement income amounting to a reduction of about $9,000 per year for a typical retiree.