Greenspan Supports Cuts To Social Security Benefits

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WASHINGTON -- Federal Reserve Chairman Alan Greenspan urged Congress on Wednesday to deal with the country's escalating budget deficit by cutting benefits for future Social Security retirees rather than raising taxes.

In testimony before the House Budget Committee, Mr. Greenspan said the current deficit situation, with a projected record red ink of $521 billion this year, will worsen dramatically once the baby-boom generation starts becoming eligible for Social Security benefits in just four years.

Mr. Greenspan said that the benefits now received by current retirees should not be touched but he suggested trimming benefits for future retirees and doing it soon enough so that they could begin making adjustments to their own finances to better prepare for retirement.

Copyright © 2004 Associated Press

Updated February 25, 2004 10:21 a.m.

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