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"In 2008, we'll see the system go south," Rove said at the Ameritrade Holding Corp. facility at the Southroads Mall. "We've got to solve the problem now."
About 500 employees listened to Rove explain his thoughts to reform Social Security and why President Bush's personal savings account idea is a sound one.
People who invest in the stock market will make more money for their retirement, he said, and it also gives them a feeling of ownership.
When beneficiaries die, the money from these savings accounts can go directly to their children, unlike the money collected from regular Social Security benefits, Rove said.
Without any reforms, Social Security will begin taking out more money in 2017 than it takes in and by 2041 the system will be bankrupt, he said.
"Raising taxes won't work," Rove said.
To ensure that the system doesn't go bankrupt, payroll taxes would have to rise by 50 percent, he said.
Seniors now retired and those nearing retirement would not see any changes in their benefits under the president's plan, Rove said.
More and more people are also going into the stock market, he said.
"Half of the households in America have investments in the market," Rove said.
"There's a problem with Social Security and we need to fix it," said Pete Ricketts, chief executive officer for Ameritrade.
