Social Security Problems

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

Our nation ensures social welfare through Social Security. However, the United States cannot ensure the welfare of its own welfare system. To save Social Security, Americans in general do not favor an increase in the payroll tax, a cut in benefits or an increase in the retirement age. Furthermore, Americans are relying upon Social Security as their sole source of income at increasingly alarming rates. Social Security is intended to supplement retiree income, not account for 100% of it. Through elimination of the potential options, that leaves one necessary action: invest the Social Security trust fund in the stock market.

For many years the social security program has been operating successfully. In recent times however, it is becoming apparent to some that social security is in need of reform. Their argument is that with the amount of people getting older in the next couple of decades, there will not be enough money left in the social security reserves to pay for everyone who needs it. That is why the idea of separating social security up into private funds has been brought to the attention of the American citizens. This idea of reform has been around for quite a long time; however it has been pushed on by pro reform supporters more in recent times because they think it is necessary for the

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,

The Social Security Act of 1935 was passed in order to provide for elderly citizens who could not provide for themselves. Through this system, working citizens would pay into the system to provide for citizens aged 65 and older, and then when they reached the age of 65 they would be cared for as well. This system continues today, but as the life expectancy of citizens increases, many wonder if the Social Security cut off age should be raised to 70. It should. The fact of the matter is that the average 65 year old does not need their social security check in the way they did in 1935, so the system shouldn’t be wasting its finite resources caring for them.

Social security was created in response to the persuasive poverty during the great depression. It began when the social security act was signed by the FDR on Aug 14, 1935 but taxes for it were not collected until January 1937. Although its goal was to provide retired citizens with funds to survive it was ultimately a long-term shortfall. The plan for social security as it stands today would only last until 2033. This is due to demographic pressures and a week economy as of late. Without any modifications, social security will certainly not be around for the future generations.

This is to clarify the discrepancy between the Social Security Number on the FAFSA application and my parents 1040. One of the SSN on 1040 is not an SSN but an IRSID number given to one of my parents. That is why the SSN on the FAFSA does not match because I did not put one. I just put zeroes as I was told by my high school advisors. As I did not know about the IRSID number.

As of September 4, 2015, the United States national debt is over eighteen trillion dollars as depicted by the national debt clock. This enormous number is caused by many expenses, one being Social Security. Because of money deficits, the Social Security fund is disappearing more and more as each day passes. Predictions by the Social Security Administration itself have been made to assume that Social Security will run out by 2037, which means my generation and the generations that follow me will suffer the

Solvency of The Old Age and Survivors Insurance System Is at Risk, Which Could Have Dire Effects on the Benefits of Some Retirees

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

Following his election in 1933, Franklin Delano Roosevelt signed into law something radical for its time: The Social Security Act. This act changed America’s economic landscape completely, by minimizing the long-existing problem of retirees and the elderly living below the poverty line. Simply put, Social Security is a way to guarantee that older people, namely retirees, have at least a minimal source of income in their later years, by providing around 40 percent of the average person’s yearly income. Social Security both is and functions as a defined benefit plan, wherein benefits are decided by the amount of quarters than a person works, and are decided by a sliding scale with caps (United States). As directed by the sliding scale, per-dollar benefits are much higher for people of lower incomes, while overall-benefit amounts are higher for those of higher incomes (Benefit). Both the scale and the caps are adjusted yearly according to inflation. Social Security accumulates its funds into a trust fund, and puts excess money into investments in US Treasury Securities, where interest is accumulated and put back into the fund. Social Security’s benefits are not affected by the investments. Since 1982, the Social Security trust fund has experienced a net-increase and in 2015, the asset reserves sit at 2.8 trillion dollars (Financial). Despite this, the misinformed often point their fingers at the trust fund and claim that it is on its last leg, and will soon run out. Every few

The Social Security System is in need of a new reform; our current system was not designed for the age stratification we have at this time. The U.S. Social Security Administration Office of Policy states, “The original Social Security Act, signed into law on August 14, 1935, grew out of the work of the Committee on Economic Security, a cabinet-level group appointed by President Franklin D. Roosevelt just one year earlier. The Act created several programs that, even today, form the basis for the government's role in providing income security, specifically, the old-age insurance, unemployment insurance, and Aid to Families with Dependent Children (AFDC) programs.” Social Security was modeled to aid the elderly citizens, however during the

(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