More than half of Americans say investing Social Security money in shares is too big a risk, while about a third say it's necessary to improve the rate of return, a Newsweek poll has found.
President George W. Bush said in his State of the Union address that Social Security,the Government programme that provides economic assistance to retirees and the disabled, faced a funding crisis and would be "flat bust" by 2042.
The Newsweek poll found 65 per cent of those surveyed agreed.
The President proposed allowing as much as 4 per cent of Social Security payroll tax money to be diverted into individual savings accounts to shore up the system. Thirty-six per cent of respondents opposed that plan, 26 per cent approved and 30 per cent were not aware of it.
"The problem is that the number of people putting money into the system is declining," Bush said. "The status quo is unacceptable to younger workers."
The nation's largest seniors association and congressional Democrats are against Bush's plan, saying he is exaggerating the programme's future shortfall and his proposal would put retirement benefits at risk and deepen the federal Budget deficit.
Forty per cent of respondents said the best way to run Social Security was to tax one generation to pay for the retirement of another, the way the system had operated since it started in 1935.
Almost as many - 39 per cent - said the best way was for the Government to direct workers' money into the sharemarket to generate a higher rate of return on retirement savings. However, 53 per cent of 18 to 34-year-olds say using the market to get higher returns is the best way, while 54 per cent of 55-year-olds and older say the present system is best for funding Social Security.
Under Bush's plan, those aged 55 and older would face no changes in their expected Social Security benefits. Those born in 1950 or later may set up private accounts if they wish.
