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[Dolly Watson]

WASHINGTON (CNN) -- President Bush will outline his plan to save a Social Security system that he will warn is heading toward bankruptcy, and present his strategy for "a new phase" in the Iraq war Wednesday night in his State of the Union address.

"Over the next several months, on issue after issue, let us do what Americans have always done and build a better world for our children and grandchildren," Bush will say, according to excerpts of the speech released in advance.

Bush is scheduled to address a joint session of Congress at 9 p.m.

"Fixing Social Security permanently will require an open, candid review of the options," Bush will say. "I will work with members of Congress to find the most effective combination of reforms."

In his speech, Bush will refer to Social Security as "one of America's most important institutions -- a symbol of trust between generations."

The president will also address the war in Iraq, saying that "our generational commitment to the advance of freedom, especially in the Middle East, is now being tested and honored in Iraq."

"We will succeed because the Iraqi people value their own liberty, as they showed the world last Sunday," Bush will say. "We are standing for the freedom of our Iraqi friends, and freedom in Iraq will make America safer for generations to come."

Bush will also tell Americans that "the new political situation in Iraq opens a new phase of our work in that country."

"We will increasingly focus our efforts on helping prepare more capable Iraqi security forces -- forces with skilled officers and an effective command structure."

Echoing a theme he struck in his second inaugural address, Bush will also link America's future security to the advance of freedom, particularly in the Middle East, according to the excerpts.

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