Ball State University sophomore Sam Day, like many collegestudents, said he's always been concerned about having a goodcareer and financial situation.
But unlike many students, he said he's also looked even fartherinto the future at his retirement and at the threat of having noSocial Security.
"I hope there are still Social Security benefits when I'm oldenough to receive them," Day said. "On the track we're on rightnow, it doesn't look that promising."
And that's what more students should be looking at, CecilBohanon, economics professor, said.
< B>TODAY'S YOUNG PEOPLE PAY INTO SOCIAL SECURITY<B>
Bohanon said many students don't value Social Security as aretirement plan because retirement seems so far away, but theprogram affects young workers a lot more than they realize.
"You get older much quicker than you think," he said. "Youngpeople end up paying the taxes that support Medicare and SocialSecurity, so if there's going to be social reform, one personthat's going to end up paying for it is current taxpayers ... Itcomes right out of your paycheck."
Bohanon said 7.5 percent of a young worker's check ends up goingto Social Security. The employer takes an additional 7.5 percentfrom the check unbeknownst to the worker, which means that 15percent of all the worker earns goes into the Social Securitysystem.
"That's a pretty big chunk," Bohanon said.
< B>PROGRAM PROVIDES RETIREMENT GUARANTEE< B>
He said the whole purpose of the Social Security program is togive everyone a minimum guarantee of having some income duringretirement. The pay-as-you-go system is fiscally problematic,however, because current retirees are enjoying the surplus thatyounger workers are paying, but the same funds may not be there forthe workers when they retire.
"Demographics and statistics are such that at some point in thefuture, they will have to figure some way to find the money tohonor Social Security's current obligations," Bohanon said.
And for this reason, many students agree that Social Security isnot the best retirement plan because they don't necessarily get outof it what they put into it, he said.
< B>BUSH WANTS REFORM< B>
According to the American Federation of Labor and Congress ofIndustrial Organizations, President George Bush has proposed topartially privatize Social Security, which will allow young workersto create voluntary personal savings accounts with some of themoney they currently pay into the Social Security system.
Democratic presidential candidate John Kerry is against theidea, arguing that it will end up decreasing benefits for seniorcitizens.
"It's the idea that young workers would be able to take some ofthat money they're putting into Social Security and put it intotheir own retirement accounts and in other investments that wouldgive higher yields than Social Security might," Bohanon said. "Theywould have more money 40 years down the road. The downside is thatinvestments are risky."
< B>KERRY AGAINST CHANGES< B>
While Bush at least has some willingness to reform the system,he said Kerry hasn't said much about what he will do about SocialSecurity. The future president's decision will ultimately affectwhen young workers retire and how much they retire with, hesaid.
"The final analysis is that somebody's going to pay, and it'sprobably going to be you," Bohanon said.
Day, who is pursuing a career in the film industry, said manystudents should be focusing on the threat of not having guaranteedretirement benefits, especially because more economic risk is beingshifted from employers to individual workers.
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