Only poorly informed Americans support Bush's plan

"When the going gets tough, the tough change the rationale." With the privatization of Social Security, like the Iraq war, the rationale has been changing on a daily basis but there are reports that Americans are buying none of it this time. In fact, as ad dollars get pumped by conservative groups, the effect is actually negative. The more President Bush has campaigned the less Americans like his idea. In a USA TODAY/CNN/Gallup Poll conducted Friday-Sunday found that just one in three Americans approved the idea. A slightly different poll done by Associated Press found similar opposition to president's ideas. The reason for this change is simple. As the debate has come out in the open and more details have come out, informed Americans are realizing that there is nothing in it for them. Only the poorly informed Americans (and the percentage is rapidly falling) seem to support the idea. (Related article: Bush fails in his marketing of privatization)

And they are right. While retirement planning, saving, personal retirement accounts, wealth creation, and ownership society are all noble goals, unfortunately President Bush has none of these on his minds. He simply wants to dismantle a system that conservatives hate, well, because it is "social." It helps American people when they most need it and that runs counter to conservative philosophy which essentially says that "you are on your own, Buddy!"

Why are American people right?

1. Private retirement accounts, as envisioned by President, Bush do nothing to reform Social Security.
2. The debt and transition costs that could run into trillions will unnecessarily future generations. Even Chairman Alan Greenspan is highly concerned about privatization of Social Security and is advising caution.
3. The upside potential with private retirement accounts is low and the downside potential is high. So most financial advisors are telling Americans that even if they support the president's plan, when it comes to their own retirement planning, they should not choose these accounts. On the other hand, they should simply stay with guaranteed income. (Related article: Americans advised to stay away from private retirement accounts if they become available)

So what can you do in the meantime?

1. Follow the debate closely and watch out for the details. In this case, the devil is really in the details. A lot of bad information about private retirement accounts is not being given out in sound bites and election style television and radio ads.
2. Do not believe anything that you see or read until you have researched it yourself. There are reports that even the Social Security Administration (SSA), a government agency, has been hijacked by the administration. A recent analysis reveals that the agency has systematically altered agency publications, press releases, PowerPoint presentations, website content, and even its annual statements to foster the impression that Social Security is "unsustainable" and "must change." The agency's new pessimistic tone and emphasis echo President Bush's warnings about the future of Social Security.
3. Let not the decision be a political one for you. Social Security privatization is a personal finance and retirement planning decision and no matter someone tries to tell you, you have to crunch your own numbers to find out what works for you.

Recommended articles

Tips on stable retirement income

Find out if you are prepared for retirement

Personal finance tips for retirement