Social Security Issue Analysis

Decent Essays
Discussion Week #12
Social Security is one of the largest domestic federal programs with the largest source of income for most retirees, and is relied by the most vulnerable people of society. However, the program is financially unstable for the upcoming decades to come. Estimates show that Social Security will be to pay Americans’ full benefits for the next 20 years, but after 20 years, future generations could be in trouble, and Social Security will not be able to provide benefits towards the American people. Specifically, according to a news article by, National Affairs, written by, Andrew Biggs, “A New Vision for Social Security”, “It is therefore incumbent upon today's policymakers to address Social Security's fiscal problems and to ensure
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However, some suggest that increasing the retirement age will close Social Security’s funding gap. The reason in need to change the retirement age is because Americans over the years have been able to live longer, which essentially means that Social Security benefits are given to a person much longer as well. From an article by the AARP commission, or American Association of Retired Persons, written by, Romina Boccia, and Virgina Reno, “Updating Social Security for the 21st Century: 12 Proposals You Should Know About”, “…Americans continue to live longer from one generation to the next, individuals will, on average, receive Social Security benefits for a longer time. The trend contributes to Social Security’s funding gap…” Back in 1935, a 65 year old men ranged to spend approximately 12 years in retirement benefits in contrast in modern times where average 65 year old men can spend up to 18 years’ worth of retirement benefits. A scenario of starting in 2023, the retirement age would increase every two months each year until 68 years old in 2028. By doing so, the funding gap would close to 16 percent. The earliest age to begin claiming retirement benefits is 62 years old, however, potentially that number can increase as well. With that said, another way is to gradually raise both retirement age and early eligibility age. If to begin in 2023 as well, the earliest age to claim full retirement benefits would increase from the current 62 years old to 65 years old. Unlike increasing the retirement age, by changing the earliest age to claim Social Security, the funding gap would close 26 percent. Both concepts are to reflect American’s longer life spans, and is ideally fair to Americans, and in addition, improves Social Security’s
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