Social Security an insurance plan

The 70-year-old Social Security system has been called the most effective and successful government program in the country’s history. More than 60 percent of its beneficiaries are women. And it’s among women that we’re seeing increasing resistance to President George W. Bush’s plan to privatize part of the funding process.

This is why the administration is launching a campaign to convince women that if they succeed in having workers put part of their Social Security payments into private market accounts, women will benefit.

Not so. Even the AARP — which, in my opinion, did not cover itself in glory by supporting the prescription-drug discount-card program — is coming out against the proposed changes. So are a number of women’s organizations.

Currently, Social Security funds are put into U.S. Treasury bonds, considered one of the safest investments in the country. Taking money out of the system for workers to invest in the stock market, as the president’s plan proposes, is adding a risk factor to what has been a largely risk-free undertaking. And if the system buckles as a result, it will impact most on women.

Although we tend to think of Social Security benefits as retirement-focused, the fact is, Social Security has helped families — especially those headed by single women — provide for the basic necessities of life for themselves and their children. Disability payments are available for people of any age who are unable to work. And, again, more women than men are represented in these benefits categories.

Also keep in mind that the argument that you can get more money back from private market investments than from what you’ve paid into Social Security is misleading: Social Security is not, and never was, meant to be an investment. It is an insurance program, and one that has never failed to deliver on its promise.

I’d appreciate your thoughts on this issue.