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The Bush administration is way ahead of this issue. They've had a proposal on the table since he was a candidate the first time. Privatization is the answer.

I don't think it is that simple. Wish it would be. The administration quietly shelved their program to introduce privatization. Part of the problem at the time of course was that the market was in the tank. It is very hard to convince people to switch over to a market based system when the market frankly stunk.

Senior citizens happen to be the most risk adverse people on the planet. Many of them are still keeping their money in low interest accounts because they are terrified of the ups and downs on Wall Street. Remember, the senior citizens grew up during the depression for the most part. There are big exceptions to this rule, but it is still a truism.

If the President wants to go the privatization route once again, he needs to time it well. If the market makes a huge 500 point run, he needs to run out the door, grab a microphone in the rose garden and make the speech then. Otherwise, no matter how right economically he may be, politically, it can be a killer. The democrats have long experience in terrifying the old people. Think they are going to play nice this time?

It's the best route (along with means testing), and once again, only the R candidate has the courage to say so.

My main problem with privatization is the fact that government would be involved in private markets. There is just something about that, which is bothersome.

I do like the idea of the 5% contribution to index funds or something restricted. It would be preferable and better for everyone in the end, but the devil is in the details.

Senior citizens happen to be the most risk adverse people on the planet. Many of them are still keeping their money in low interest accounts because they are terrified of the ups and downs on Wall Street.

It's actually quite rational. The effect of losing 50% of one's savings is much more unpleasant than the effect of increasing them by 50% is pleasant. For younger folk, there's a good chance of recovering, given time. For the folks who aren't buying green bananas, however, there isn't.