The United States Treasurer says letting younger workers divert some Social Security payroll taxes into private investments is essential for them to “supplement” what are likely to be reduced Social Security benefits. U-S Treasurer Anna Escobedo Cabral spoke yesterday (Wednesday) in Des Moines, and said private savings accounts for younger workers “could make a tremendous difference” if one of the solutions for fixing the Social Security system is cutting benefits for younger workers. “At the end of the day, we are concerned that individuals can in fact be able to drawn on the money that they create in a nest egg so that their future is protected,” Cabral says. Personal savings accounts are a “much more modern approach” to resolving the problems with the Social Security system, according to Cabral. Cabral says there’s no question the Social Security system needs repair, since estimates indicate it will dip into the red by 2018 — and be bankrupt in 2042 if nothing’s done. Cabral says if things aren’t fixed, the next two generations of Americans will be saddled with enormous financial problems. Cabral, who describes herself as a “spokesperson” for the President’s Social Security reform ideas, was the keynote speaker at a meeting of credit union executives yesterday (Wednesday) in Des Moines.
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