WASHINGTON Greenspan urges future cuts in Social Security

Retiring boomers are going to stress the system enormously, the chairman said.
WASHINGTON (AP) -- Federal Reserve Chairman Alan Greenspan urged Congress today 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, 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.
He said the prospect of the retirement of 77 million baby boomers will radically change the mix of people working and paying into the Social Security retirement fund and those drawing benefits from the fund.
"This dramatic demographic change is certain to place enormous demands on our nation's resources -- demands we will almost surely be unable to meet unless action is taken," Greenspan said. "For a variety of reasons, that action is better taken as soon as possible."
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.