Bill Clinton: “Thank you very much. Andrew and Theresa and I were walking down here, and they were mildly nervous because they don't do…”

“Thank you very much. Andrew and Theresa and I were walking down here, and they were mildly nervous because they don't do this every day. But I think you did a very fine job. I want to thank them and their three sons for coming. I'd also like to thank Felicia Harris and her daughter, Alexis, who came because they're another representative family who will be benefited by the USA account proposal. I thank Senator Barbara Boxer, who is here and has had to stand up here alone because all of the House Members who were supposed to be with her are back at the House voting, and I appreciate her being here. I want to thank Secretary Rubin for his leadership on this issue, along with Deputy Secretary Larry Summers and Secretary Shalala and Gene Sperling, my national economic counselor. You know that we want to talk to you about a major issue relating to retirement security in the 21st century. I think it's important to start out by saying that this will be a very big deal to a lot more people. We all know that the number of people over 65 will double by the year 2030. By the year 2050, the average American will live to be 82 years old. Now, keep in mind that in 1900, life expectancy was only 47\1/2\ years. It took 4,000 years, the majority of all recorded history, to make a leap in longevity like the one we have seen in just one century. Now, as I get older, I remind everyone that this is a very high-class problem, and I like it better as the years go by. They are a precious gift. President Roosevelt said, ``There is no tragedy in growing old, but there is tragedy in growing old without means of support.'' Historically, our people have relied upon three basic means of support. First, Social Security: It became the basic means of support and still alone is responsible for lifting almost half of our senior population out of poverty. But it was never supposed to be seniors' only means of support. And we see by the fact that the poverty rate among elderly single women is twice that of seniors in general what happens when Social Security is the only means of support. Pensions are the second, and private savings are the third. Retirement, to be truly secure, needs a mix of all three. Well, how strong are these building blocks for most Americans? First, Social Security: It's a rock-solid guarantee, and it has been for generations. But for the 18 percent of the seniors, as I said, for whom Social Security is their only source of retirement income, life is still pretty tough. The first thing we have to do is to make sure that Social Security will be there for the baby boomers. As I said in my State of the Union Address, that's why we ought to set aside 62 percent of the surplus to save Social Security and at the same time, as Secretary Rubin said, to pay down our national debt. We also need to be very mindful that Medicare is quite important not only to Social Security recipients who have that as their only source of income but a lot of other seniors, as well. And we need to set aside enough money from the surplus to secure Medicare well into the next century. Our budget plan pays down the debt and saves Social Security and Medicare. I look forward to working with Congress over the coming months to make some changes that are necessary to lengthen the life of both the Social Security and the Medicare Trust Funds, to maintain our fiscal discipline and secure the health of our economy into the 21st century. Now, what about the second building block, private pensions? Half of all American workers, 73 million of them, have no employer-provided pensions whatever. IRA's and 401(k)'s are something they hear and read more and more about but don't have for themselves. Currently, only one- third--listen to this--only one-third of the tax benefits for pensions and retirement savings go to families who earn less than $100,000, even though they represent the vast majority of working people in the United States today. The third building block is personal savings. Americans living longer than ever and moving from job to job, who may have defined contribution rather than defined benefit pension plans, more and more will need to increase their personal savings. Our national savings rate has doubled over the last 6 years because we're saving more in the Government and not having deficits. But personal savings has gone down over the last 6 years. Too few Americans are saving for their own retirement. For too many Americans, the hard work they do to provide for their families today, as you've just heard, makes it difficult for them to save for tomorrow. The typical family, headed by someone between the ages of 55 and 64, has financial assets worth just $32,000. That won't support them very long in their retirement. For many Americans, as their lives stretch longer, their resources are stretched thinner. I believe Americans who work hard their entire lives and raise their children should not have to have their retirement poised precariously on the edge of poverty. I believe that Americans, however, have to do more to save for their own future, but that Americans deserve the chance to do that. Now, that's what this USA account proposal is all about. It is a complete and comprehensive new plan to help Americans with retirement savings for the 21st century. It is the right way to provide tax relief for the American people, and it is the right way to increase savings and strengthen our economy, even as we help families like the ones we honor today. Now, I proposed in the State of the Union Address setting aside 12 percent of the surplus to establish these accounts. Let me say specifically what I think we ought to do. I propose that Americans be given the chance to open, voluntarily, Universal Savings Accounts. I propose that workers receive a refundable tax credit if their incomes are up to $80,000 a year, deposited directly into their USA accounts, and as they save, that the Government help them save further, matching their contributions on a sliding scale, depending on income, giving extra help to those least able to save. Further, I propose that aid be given to people with incomes between the incomes of $80,000 and $100,000 a year, but on a reduced basis. And even for people with incomes over $100,000 a year, if they have no other personal retirement savings or pensions, they should also be eligible for this help. This would give many, many millions of Americans a new opportunity to invest in the growing American economy, to have some wealth and security in retirement. It will revolutionize savings not simply for older Americans, but especially, perhaps, for younger Americans, from their very first days in the work force. With USA accounts, everyone in the USA will be able to save---- [At this point, several Members of Congress arrived.]”