Britain's Bush-Like Approach to S.S. Hasn't Worked - Phil. Inquirer

[JPZenger]

http://www.philly.com/mld/philly/news/nation/11136726.htm
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Britain's change to a Bush-like approach hasn't worked well, an official warns.

Philadelphia Inquirer

"The man in charge of recommending changes to Britain's retirement system offers Americans a warning: Beware of changes to Social Security such as those President Bush is urging. Nearly 20 years ago, Britain adopted a form of personal investment accounts much like the one Bush proposes. Britain also changed the way it calculates retirement benefits to adjust for inflation, keying them to consumer prices rather than wages, as Bush and others are considering for Social Security.

...contrary to the benefits promised when the British changed their system, their approach is not increasing national savings and is not fostering an "ownership society," and workers are retiring poorer than they did before. As a result, Turner is looking at revising Britain's system again to make it more like the traditional U.S. Social Security system that Bush proposes to change.

Since 1987, Britain has allowed workers to carve out a portion of their wage taxes to invest in stocks and bonds, much like Bush's proposed personal accounts. British workers accept a cut in their future guaranteed retirement benefits in exchange for the chance that their investments might earn more... Britons are not saving more for retirement, and they are not earning more in private accounts..."

[AllegroRondo]

1. now over half of British retirees need additional gov't welfare

[struggle4progress]

2. kick