Americans want Social Security investment option
but might not use it

By WILL LESTER, Associated Press Writer

WASHINGTON (AP) - Three-fourths of American adults think they should have the option of investing part of their Social Security withholdings in the stock market, according to a poll conducted for The Associated Press. Men are more likely than women to want to take advantage of the option.

Just over half of men polled by ICR/International Communications Research, of Media, PA, said they would use the investment option if they had it, compared to four in 10 women. The option is one of several under consideration as the government searches for ways to keep the Social Security Trust Fund solvent as baby boomers prepare to retire.

Twenty-nine-year-old Cristin Hewlett of Chula Vista, Calif., says she's in favor of changes that could keep the system healthy when she is ready for retirement, from personal investment to letting the government invest.

"If we're all paying into it, it would be in our interest to see some changes," she said. "They should invest the money. I think it can be risky, but if qualified people do the investing, everyone can benefit."

The poll showed that three-quarters of Americans feel the Social Security system needs a major overhaul. But four out of five oppose raising the retirement age to 70, and seven out of 10 oppose raising payroll taxes across the board to help shore up the system. They are less resistant to smaller steps, such as reducing cost-of-living increases when necessary or taxing only higher-income workers to raise money.

The telephone poll of 1,006 people, taken Dec. 2-6, has a margin of error of plus or minus 3 percentage points.

The poll found widespread skepticism about who will take the lead on the issue. When asked whether the president or Congress would do a better job of dealing with Social Security, more than half said neither would.

About 25 percent said the president would do a better job, while less than 20 percent said Congress would do better.

Social Security is in danger of being overwhelmed by the impending retirement of the largest generation in America's history - the baby boomers. Current predictions are that the program will run out of money in 30 years if nothing is done.

But making clear to the public that tradeoffs are essential is a big job.

"There's no question that Americans are just beginning to understand that reform is possible in 1999 from a political point of view," said Carolyn Lukensmeyer, director of Americans Discuss Social Security, a nonpartisan project of the Pew Charitable Trusts.

A survey late this summer for ADSS found that increasing taxes for wealthier workers was more popular than such options as raising the retirement age, taxing everyone or cutting back the system's guarantees.

"One of the key messages we've seen is that people are very concerned that Social Security changes not weaken the safety net for those who are disabled, older women living alone, those with low incomes," said John Rother, director of legislation and public policy for the American Association of Retired Persons, the major lobbying association for retirees.

The poll showed differing class attitudes about the Social Security debate. Almost a third of those who earn less than $15,000 a year want to make only minor adjustments in the current system, compared with one in six who earn more than $50,000. And low-income workers were less likely to favor investment of Social Security money in the stock market.

The formation of public opinion on a complex program like Social Security takes time, said Martha Phillips, of the nonpartisan Concord Coalition. Right now, the public is just becoming aware of the possible solutions, she said.