The presidential candidates all agree that Social Security needs to be fixed, but they have different views on how to do that.

Hillary Clinton and Barack Obama both want to keep and strengthen the current Social Security system. John McCain and Mike Huckabee want to fix Social Security by using personal, private accounts. To understand the difference, it is essential to understand the current system.

Social Security is a pension plan, but it is also a social insurance plan. The big advantage is that it lasts for as long as you live, and keeps up with inflation. It is based on how much Social Security taxes you paid for the top 35 years of your income, and increases for inflation every year after you retire. It is a little more generous to people who earned less, and a parent who stays home to raise children or care for elderly parents can get Social Security benefits based on half their spouse’s retirement benefit.

For most retirement plans, the more you earn, the more money you put into the retirement account, and the more money you will have when you retire. The more you put in, the more interest you can earn on the money. Most people have a lump sum of money when they retire, and that needs to last as long as they live. If you think you’ll only live for 5 years, you can spend a lot more of your money each year than if you think you will live to be 100 years old.

Every employed American must pay 6.2 percent of their salary in Social Security taxes, but only for the first $102,000 of salary (in 2008). That means that a person earning $102,000 in 2008 will pay $6,324 and so will Bill Gates or anybody else earning millions of dollars in salary. Their employers will pay Social Security an additional $6,324 in 2008.

That money is not put in a bank to gain interest. Instead, the money collected as Social Security taxes are used to pay Social Security benefits for people who are currently retired. So, if you’re still working, your taxes will help pay for somebody who is retired, such as your mother or grandfather.

Since there is more money being collected by Social Security than is being spent by Social Security this year (and for many years in the past), the extra money goes into the Social Security Trust Fund. The Trust Fund will be needed in the future when the baby boomers are retired and there aren’t enough working adults to pay their Social Security benefits. Everyone agrees that we need to prepare for that day, which isn’t that far away. However, the Social Security Turst Fund isn't like a bank -- its not a building or a place. The money is spent on other things the government pays for – medical research, the war in Iraq, farm subsidies, the bridge to nowhere, and to help pay for tax cuts. When Hillary Clinton says that Social Security can’t be fixed until the U.S. government stops spending so much more money than it receives in taxes, that is what she means. We need a balanced budget to be able to use those monies from the Social Security Trust Fund in a few years.

The Republican candidates prefer personal, private accounts that each person can control, and invest. The money in these accounts will depend entirely on how much money a person puts in them, and how wise their investment strategy is. Stay at home Moms won’t be getting their own benefit – they will have to rely on their husband’s donation to their account. Unfortunately, private retirement accounts don’t usually pay benefits for as long as you live. If you want that kind of security (called an annuity), you will need to buy it. You will pay an annual fee to administer your private account, make your investments, and buy your annuity.

Meanwhile, what would happen to the people in their 30s or 40s who started paying Social Security taxes 10 or 20 years ago? Their Social Security taxes were already spent on other retirees. If they start a private account this year, it won't include any of the Social Security taxes they already paid. It would cost more than a trillion dollars to convert from our current Social Security system to private accounts.

As you can see, fixing the Social Security system is not easy. Usually, if a government program is short on money, it is necessary to increase taxes to pay for it, or decrease benefits. But, no presidential candidate wants to suggest either.

Barack Obama and John McCain both suggest that our next president will need to consider all options, no matter how unpopular. Obama specifically suggests increasing the amount of salary that is taxed. Instead of stopping the Social Security tax at $102,000, it should keep going up.

Normally we think that all income should be taxed. But, remember that the Social Security is a pension and the "tax" is usually directly related to the Social Security checks you will receive when you retire. If you pay more into the system, you’re supposed to get more money when you retire. Currently, a billionaire may pay the same Social Security taxes as a school principal, but if so they will also get the same Social Security checks when they retire. Would it be fair to charge more but not give bigger Social Security retirement checks? But if we provide more generous benefits to those who pay higher Social Security taxes, the Social Security system will still be short of cash.

If the Social Security system was going to be just a little short of cash, we could tinker with the benefits or taxes to fix the problem. However, we won't be just a little short of cash. That's why Hillary Clinton says that we shouldn’t even consider changing Social Security benefits or taxes until we solve the bigger problem: the budget deficit that will eat up all the money in the Social Security Trust Fund.

The National Research Center for Women & Families applauds all the candidates' interest in making sure that our retirees have financial security. Unfortunately, none of the candidates have a specific plan to save Social Security. And, we think it is unfortunate that both Democratic candidates refuse to even consider benefit cuts or raising the retirement age, and that neither Republican wants to consider raising Social Security taxes. Even very small changes in individual benefits, taxes, or the retirement age could save a lot of money because of the large number of babyboomers that are currently paying into the system and will eventually be receiving checks.

We agree with Hillary Clinton's emphasis on the big issue: the underlying U.S. economy must be stronger to support the Social Security system. This shows a clear understanding of the issue. We also support her plan to make it easier for all Americans to set up 401k retirement plans, separate from their Social Security benefits. And, we think it is worrisome that Mike Huckabee and John McCain have so little information about Social Security on their web sites.

Democrats