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Americans Discuss Social SecurityA project funded by The Pew Charitable Trusts
2001 Pennsylvania Avenue, NW, Suite 825 Over the past year, Americans Discuss Social Security (ADSS) has conducted a series of events intended to foster discussion and gauge public opinion on the question of Social Security reform. We have produced and distributed hundreds of thousands of copies of public education kits, discussion guides and videos to citizens across the country. Our engagement efforts have reached millions of Americans through teleconferences linking citizens in 15 states with each other and with decision-makers and policy experts in Washington, through forums in another 10 states and through a series of forums on college campuses across the nation. Additionally, ADSS has commissioned eight separate public opinion polls. The findings from all of these activities have been forwarded to Congress and the Administration. This experience has yielded important lessons about how Americans feel about Social Security. They do care deeply about the program, but do not think that policymakers in Washington understand how people like themselves feel about changes to the program. They are willing to learn more about Social Security and the reform measures that have been proposed. Most important, they want their voices to be heard in the reform process. The debate over Social Security reform often presents "stand alone" options for people to consider as measures to insure Social Security's future solvency. One of them, for example, would raise or eliminate the current cap on income subject to the payroll tax ($68,400 in 1998) -- a consistently popular option, even, somewhat surprisingly, among people with incomes exceeding $60,000 per year. But, as the "year of national conversation" has progressed, it has become clear to most citizens that there is no single solution to the program's future financial difficulties and that trade-offs are necessary. When put in this context, the public's fundamental priorities become clearer. A recent ADSS survey examined some of the tradeoffs people might be willing to make. Consider the proposal to raise the full-benefit age to 70. Three-quarters of Americans (74 percent) oppose this - including those between 18 and 49 years of age. Opposition decreases, however, when people are asked to choose between raising the full-benefit age and reducing benefit amounts. Then, 54 percent choose raising the eligibility age rather than cutting benefits. The survey found that a majority (52 percent) supports the idea of allowing individuals to invest some of their payroll tax contributions themselves, in some form of "individual retirement account." But, when forced to choose between individual accounts and the guarantee of an exact benefit, 61 percent choose the guarantee. There is strong support (63 percent) for keeping the Social Security trust funds safe -even at the risk of a lower rate of return - rather than putting those funds in the stock market, where they might earn more. A majority (66 percent) of this group stay with their safekeeping position, even if doing so means that benefits for future retirees have to be cut; 71 percent of them would accept paying higher payroll taxes before seeing the trust funds invested in the stock market. There have been no proposals by reformers to raise the payroll tax rate (currently 6.2 percent for both employer and employee) and, indeed, 54 percent of Americans oppose raising payroll taxes. But, when asked to choose between tax increases and future cuts in benefits, 55 percent accept the higher taxes. The bottom line is that a majority of Americans attach importance to maintaining benefit levels, guaranteeing those benefits and keeping the trust funds safe from losing value, even if choosing these priorities means accepting unpleasant consequences. There is strong support for continuing Social Security's safety net for the elderly, to keep them out of poverty and to help them maintain their dignity in retirement. And, most Americans expect that all segments of society will have to make concessions to achieve the major changes they believe are needed to bolster Social Security. Americans' views on Social Security are deeply felt but not immutable. Views can and will change as people learn more about the program and the trade-offs. Policymakers may be able to reach bipartisan consensus on changes in the program, some of which may go against the grain of current public opinion. Public acceptance of even these changes can be achieved if Americans are informed and educated about them as the policy process proceeds. While this process will need to take place, at times, behind closed doors, the negotiators must keep their lines of communication open, to hear what the public is saying and to bring the public along with them as decisions are taken. If they proceed without appropriate public education, they do so at their own peril. Carolyn J. Lukensmeyer, Executive Director [Americans Discuss Social Security (ADSS) is a non-partisan effort funded by The Pew Charitable Trusts. Our mission is to engage Americans from all walks of life in a nationwide conversation about the future of Social Security so their views can influence policymakers as they shape its future. ADSS does not take any position on the issue.]
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