[Weekly Compilation of Presidential Documents Volume 41, Number 18 (Monday, May 9, 2005)]
[Pages 715-716]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

April 30, 2005

    Good morning. This past week, I addressed the Nation to talk about 
the challenges facing Social Security. The Social Security system that 
Franklin Roosevelt created was a great moral success of the 20th 
century. It provided a safety net that ensured dignity and peace of mind 
to millions of Americans in retirement.
    Yet today, there is a hole in the safety net for younger workers, 
because Congress has made promises it cannot keep. We have a duty to 
save and strengthen Social Security for our children and grandchildren.
    In the coming week, I will travel to Mississippi to continue to 
discuss ways to put Social Security on the path to permanent solvency. I 
will continue to assure Americans that some parts of Social Security 
will not

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change. Seniors and people with disabilities will continue to get their 
checks, and all Americans born before 1950 will also receive their full 
benefits. And I will make it clear that as we fix Social Security, we 
have a duty to direct extra help to those most in need and make Social 
Security a better deal for younger workers.
    We have entered a new phase in this discussion. As Members of 
Congress begin work on Social Security legislation, they should pursue 
three important goals. First, I understand that millions of Americans 
depend on Social Security checks as a primary source of retirement 
income, so we must keep this promise to future retirees as well. As a 
matter of fairness, future generations should receive benefits equal to 
or greater than the benefits today's seniors get.
    Second, I believe a reformed system should protect those who depend 
on Social Security the most. So in the future, benefits for low-income 
workers should grow faster than benefits for people who are better off. 
By providing more generous benefits for low-income retirees, we'll make 
good on this commitment: If you work hard and pay into Social Security 
your entire life, you will not retire into poverty.
    This reform would solve most of the funding challenges facing Social 
Security. A variety of options are available to solve the rest of the 
problem. And I will work with Congress on any good-faith proposal that 
does not raise the payroll-tax rate or harm our economy.
    Third, any reform of Social Security must replace the empty promises 
being made to younger workers with real assets, real money. I believe 
the best way to achieve this goal is to give younger workers the option 
of putting a portion of their payroll taxes into a voluntary personal 
retirement account. Because this money is saved and invested, younger 
workers would have the opportunity to receive a higher rate of return on 
their money than the current Social Security system can provide.
    Some Americans have reservations about investing in the markets 
because they want a guaranteed return on their money, so one investment 
option should consist entirely of Treasury bonds, which are backed by 
the full faith and credit of the United States Government. Options like 
this will make voluntary personal retirement accounts a safer investment 
that will allow you to build a nest egg that you can pass on to your 
loved ones.
    In the days and weeks ahead, I will work to build on the progress we 
have made in the Social Security discussion. Americans of all ages are 
beginning to look at Social Security in a new way. Instead of asking 
whether the system has a problem, they're asking when their leaders are 
going to fix it. Fixing Social Security must be a bipartisan effort, and 
I'm willing to listen to a good idea from either party. I'm confident 
that by working together, we will find a solution that will renew the 
promise of Social Security for the 21st century.
    Thank you for listening.

Note: The address was recorded at 7:35 a.m. on April 29 in the Cabinet 
Room at the White House for broadcast at 10:06 a.m. on April 30. The 
transcript was made available by the Office of the Press Secretary on 
April 29 but was embargoed for release until the broadcast. The Office 
of the Press Secretary also released a Spanish language transcript of 
this address.