Budget Office Says Social Security will Start Losing Money in 2020

FEBRUARY 1, 2005 - Posted at 3:13 p.m. CST

WASHINGTON - A report from the National Women's Law Center says proposed cuts in Social Security would be unduly harsh on women in Arkansas and North Dakota.  Those two states are among those President Bush will visit this week after his State of the Union address.

Bush wants to give younger workers the option of setting aside a portion of their payroll taxes into personal retirement accounts.  Aides have also indicated the administration may propose reducing the starting benefit for future retirees by as much as 40 percent.

The National Women's Law Center yesterday issued a state-by-state report estimating that benefit cuts for future retirees would fall particularly hard on widows under an option that administration officials are studying.

It said the typical widow benefit of $865 a month would be reduced to $476 under the leading privitization plan.

Meanwhile, in Washington yesterday, the Congressional Budget Office said the Social Security system will take in more money annually than it pays out in benefits until 2020, two years later than earlier estimated.

(Copyright 2005 by The Associated Press.  All Rights Reserved.)