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
Since the very implementation of Social Security in 1935 during the time of the Great Depression to present day, it has been a never-ending source of controversy. As mentioned by Nancy Niles, Social Security was considered “old age insurance” (Niles, 2011, p. 9). It was designed to help older Americans, workers who become disabled, and families in which a spouse or parent dies (Niles, 2011). Not only has Social Security played a very essential role in the lives of many Americans throughout the years, but has also been very important to the economic security of the United States of America.
The United States of America is one of the most diverse places in the world. We all share different cultures, beliefs, and problems; nevertheless, economic security is a universal, human problem that each society has had to encounter in some way. The term “social security” was introduced to the United States in 1935, during the Great Depression, when the Social Security Act was passed. Social security has created about 16 social welfare programs over the years. These programs were developed to give millions of Americans a sense of economic security and to show that the government cares about the well-being of their own. The most popular programs under the Social Security Act are Old-Age, Survivors, and Disability Insurance (OASDI) and Medicare and Medicaid Programs. These programs have greatly influenced the lives of many United States citizens and allow our people to feel secure.
The United States Government made a promise to each taxpayer in 1935 that each individual would have some form of retirement income, but the fact is that nobody should depend on a broken system as a sole source of retirement income based on the promises made so many years ago. Current shortfalls in the general budget raise many questions regarding the sustainability of the United States Government as a whole. Current projections for Social Security predict the system bankrupting, even without the government removing funds to reduce the general budget shortfalls, but many deny the probability of a crisis. A bankrupt system cannot provide a secure future for individuals and their families, and even if a Social Security bankruptcy is not
Declining pensions and rising health care costs and shrinking home values and savings accounts make Social Security more important than ever before. This paper will focus on the U.S. Social Security system exploring 1.) The principles and history of the U.S. Social Security system, 2.) Issues surrounding the negatives and positives of the system, and 3.) The future of our U.S. Social Security system. It is with all intentions to leave you with an understanding of the role and purpose of Social Security, how it affects you and how to keep Social Security alive.
The Social Security Program is a main source of income for seniors and disabled individuals in the United States. Many American citizens have thought about or heard of topics concerning Social Security most notably around election times. Economic woes and credit card purchases continue to stifle most American citizen’s ability to properly save for their future retirement needs. The methodology in this paper is a review of relevant periodicals, journals, government reports, and websites which analyze the Social Security issues facing our great nation. Most Americans are oblivious to the real truths behind this
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
Retirement and Social Security issues have become local, national, and international concerns that will also affect each of us on a personal level. Social Security benefits began in 1935 when the depression hit and put many elderly people out of work (http://ssa-custhelp.ssa.gov). Social Security has been around for over 70 years providing a dependable monthly income with automatic increases as the cost of living increased. The Social Security Administration reports that workers need 70-80 percent of pre-retirement income once retired and Social Security only provides about 40 percent (www.ssa.gov). The depletion of funds is becoming a great concern and is also getting worse with each generation.
Americans today must to plan for retirement that spreads beyond social security. Many reports have shown that social security funds will run out in the year 2036. Social Security may not even be obtainable to Americans in the near future for many reasons. For example, budget constraints, a bad economy, declining assets, stocks, 401Ks, IRA's, and inflation are big reasons why. For the past few decades, many Americans thought that they could rely on Social Security for their retirement plans. When the Great Depression happened, President Roosevelt saw a lot of Individuals not working and witnessed many of the nation's elderly with no money to retire. The Social Security program was to make sure this level of poverty cannot happen again for any worker who had paid into the program. Payroll taxes are what fund this program. After a certain percent of a worker's paycheck is taken out, it will go directly into the fund that that provides benefits to current recipients. When law makers first implemented the Social Security program in 1935, they set it up to have the working person pay into a fund to help the aging Americans that are too old to work. For many years, this philosophy has worked well.
The issues surrounding the system of social security are beginning to form a powder keg that is waiting to explode. Problems that continue to build will only present a greater threat in later years than they do now. The “baby-boomer” generation is too large of a size to be supported by social security with how it is currently structured. If we continue down this path, by the year 2037 Social Security will only be capable of funding seventy-five percent of its obligations (Matthews, NOLO). To solve this issue, we have been presented with multiple proposals from AARP and have chosen three of our favorite ideas to justify changes to Social Security in order to close the funding gap and create overall benefits for future generations to
Social Security relies on a huge amount of money to fund living costs of retired Americans. Social Security combined with Medicare, a similar government program that provides medical coverage, account for approximately 42 percent of Federal program expenditures according to figure from 2014 
Social security has those who put money into the service, and those who are taking money out. It is most ideal to have more money pumping in than out. The ratio of has changed heavily, in 1960 the people who were paying into the system, to those who were taking out was 5.1:1. In 2005 this ratio has changed to 3.3:1. It is predicted that the number of people taking out will continue to grow until it reaches the point of exceeding those who are inputting money. The service is said to have enough money to pay off full benefits until 2042, then it no longer be able to. The predictions of the exact year this will happen vary, but it is viewed as a definite outcome without changing the system, which is a crisis to come. A higher tax cap is going
Today the United States faces many challenges, challenges that mirror the changing world we live in as well as the changing dynamics of our country as a whole. There is more than a few issues on the horizon for America, and many of these issues can be tied directly to government expenditures. Not the least of which is our current position on social security spending; arguably becoming the largest Ponzi scheme the world has ever seen. However, it is the details that really accentuate the complexity and scale of this ever growing budgetary concern. In 2012 social security spending totaled 819.7 billion dollars. Making it the number two largest expense in the in our government spending structure, second only to defense by a
After its passage on August 14, 1935, Franklin Delano Roosevelt regarded the Social Security Act as “a cornerstone in a structure which is being built but is by no means completed” but whose purpose is to “take care of human needs and at the same time provide for the United States an economic structure of vastly greater soundness.” The very opposite of soundness, however, was achieved. Today, looming deficits and abuse of the program have left it the focus of many debates. At their conclusion, the discussions generally only point toward making it more difficult to receive the money you put in, back, and raising taxes drastically on those still working to provide benefits for the disproportionate amount of retirees. Its problems are vast, but a permanent solution has yet to be decided. Far less discussed, however, is if the program itself is worth saving. Because of