Social Security Benefits

Social Security has been a very beneficial government program for elderly people, and those whom they support, when being an active member in the workforce is no longer an option for reasons such as old age, disability, or death. Destruction of the program, or worse, lack of the aid, would be catastrophic. Without it, it could leave many senior citizens that can no longer

It’s a matter of either losing all that you have worked for and live in poverty when retired or allowing your hard earned dollars to grow and have a secure comfortable retirement. I believe that Social Security is a doomed Government Program and that Privatization of Social Security would allow for a more secure retirement plan for all Americans. Social Security was first created to help aging Americans in their senior years so they would not end up in poverty. Social Security was signed in as law on August 14, 1935 by President Franklin D. Roosevelt and was fully operating by 1940 (SSA). Originally a retirement program, but Social Security now includes survivor benefits, disability benefits and Medicare and all together is the largest

Currently, the United States is contemplating at a forthcoming Social Security crisis. If changes are not forged, the Social Security system will not be able to keep up with the demanded payouts and is estimated to empty the trust fund around the year 2037. In this paper I will review a brief history of the Social Security program, touch upon the eligibility requirements, discuss what economists believe about the future of the Social Security Program, and finally state the Pros and Cons to the proposed raising of the age requirement for minimum payout.

Current problems with the Social Security fund exist, and are the reasons why Social Security is in the need of reform. According to Forbes Magazine, the fund is expected to run out by 2033 (Teal 2013). At this point, money will still be coming in, but will not pay out the full benefits to recipients. The worker to retiree ratio is continuously declining, being approximately three workers to every

We could save the Social Security Program, if we engaged in some simple changes. There could be some slight changes in the retirement age area and in the Taxes area. According to the Article "Modest Changes Could save Social Security Program" written by Stephen Ohlemacher, he clearly stated that employees are 100% grantee for an full retirement benefit package once the hit the age of sixty-six. It will later rises to the age of sixty-seven for elders that was born in 1960 or later. In addition, employees are able to receive an early retirement at the age of sixty-two, although their retirement benefits would have been reduced (Ohlemacher). Some changes we can apply to the retirement age, is that we could slightly increase the retirement age until it reaches seventy in the year 2027, which would eliminate some shortfall in the program. Secondly, there should be a three-year increase in the early retirement age,

Today, the certainty of receiving sufficient benefits solely from Social Security for a quality standard of living after retirement is indefinite. Baby boomers—individuals born post World War II between 1946 and 1964—are beginning to claim their benefits, and given what I have learned in class, the number of individuals entering the workforce is inadequate to sustain such a large population, thus such generation will consume

Privatization of the United States Social Security system could actual be more efficient than the publicly operated system. Chile switched its public retirement system to a privately ran system to a less expensive system that has been fairly successful (Bosworth). Social Security privatization is overall a better option because it will increase the rate of the returns of its recipients. American 401K invested in US treasury bonds received between a 1.9% to 4.2% rates of returns while the average person born in 2004 will receive a rate of return of 1.7% (Bosworth). These bond options are as stable as a regular Social Security option is because both are provided by the government but a privatized account allows workers to pick higher yielding accounts. Privatized accounts allow for workers to also invest in the stock market at a higher risk reward basis. Survivor benefits from the death of a family member who paid into Social Security received from 75% to 71.5% for at least 10 years (Survivors Planner). This is the main flaw of the current Social Security system is that the result of an early death, the worker's family is at a significant disadvantage economically as well as emotionally. This lead to the main argument brought up by Barry Bosworth chair of international economics and Gary Burtless chair of senior fellow economics that the privatization of Social Security

It’s a matter of either losing all that you have worked for and live in poverty when retired or allowing your hard earned dollars to grow and have a secure comfortable retirement. I believe that Social Security is a doomed Government Program and that Privatization of Social Security would allow for a more secure retirement plan for all Americans. Social Security was first created to help aging Americans in their senior years so they would not end up in poverty. Social Security was signed in as law on August 14, 1935 by President Franklin D. Roosevelt and was fully operating by 1940. Originally a retirement program, but Social Security now includes survivor benefits, disability benefits and Medicare and all together is the largest

Many politicians have utilized the privatization of social security as a political platform. For example, former President George W. Bush has had 47% of Republicans that has voted in support to privatize the system. Presently, the payments received from the Social Security system grants monetary payments to the millions of Americans that are either retired or the family members of the retired and disabled for deceased workers. The federal government is held responsible for collecting these payments. Back in 1935, the social security system was formerly known as the Old Age and Survivors Insurance (OASI). During this time, it only took seventeen contributions from workers to pay one retiree. In comparison to now, a quarter of the employed U.S households that has contributed into the Social security funding

I believe our current social security system should be replaced by a mandatory private pension system. If it is not gracefully transitioned from the way it currently is then it will unfortunately disappear altogether in an abrupt fashion. A replacement will alleviate this issue and replace it with a viable option that can sustain itself.

According to the Social Security Administration “The future is uncertain in many respects, and on new information, projections of the financial status of the Social Security program vary somewhat over time. What is virtually certain is that the benefits that almost all Americans become entitled to and most depend on will be continued into the future with modifications deemed appropriate by their elected representatives in the Congress” (Goss, 2010). With that said and the funds in the system depleting the issue now becomes what is the solution/reform for this issue and who will pay? Or where will the funding come

     There is much-heated debate on the issues of Social Security today. The Social Security system is the largest government program of income distribution in the United States. People are concerned that they won't see a dime of what they worked so hard to contribute into the Social Security system for so many years. Social Security provides benefits to about forty-three million Americans. Not only to retired workers, but also to their spouses and dependents of the workers who die prematurely. It also provides benefits to disabled workers and their dependents. Social Security appears to most people like a simple retirement saving’s account. After all, you generally

Rosen and Gayer (2010, pp. 247-250) explained that United States Social Security has the big probability of facing long period financial problems in a following years. The reasons why the system will not be sustainable anymore are the tendency of aging population which raise the excess of expenditures over revenues. The specialists already offered some assumptions how this problem can be solved. For example, the retirement age can be growth till 68 age, salary tax can be increased and the amount of benefits can be reduced by increasing the number of years while calculating

With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.

(5) Currently SS funds are collected and distributed on a pay - as - you -go (PAYG) system in which Social Security taxes from individuals are immediately distributed by the means of the SS Administration as it sees best fit. This means that taxes collected are not reserved for the individual who has paid them: in Rose 2 the current state he or she must rely on those persons paying SS taxes during the time of their retirement (Becker). For a number of these characteristics and future issues, the Social Security System must be reformed or completely abolished to meet the needs of tomorrow. The leading concerns of Social Security that merits the immediate initiation of reform are the demographic and economic circumstances in the coming century. Even though "forecasting the economy and budget over such a long period is uncertain" there remain many "certainties" regarding problems facing Social Security in the first half of the 21st century (OMB, Budget Perspectives 23). The Federal Government's responsibilities extend well beyond "the five- or six-year window" that has restricted the focus of recent budget analysis and debate. Of these "certainties" are the mounting challenges posed from the baby-boomer generation. This generation, born in the years after World War II, is aging