Social Security Reform

617 WordsFeb 4, 20182 Pages
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. First let us get into the numbers. If we are just looking at the retirement benefit and not disability or Medicare then our current system is barely balancing. In 2012 the total amount of income was 731.1 billion and a payout of 645.4 billion. With still more baby boomers to come this cannot be sustained. Also, how are we to know when the next baby boom will occur? The average life expectancy when social security was introduced in 1935 was 61.9 which is now our average retirement age. The current life expectancy is 78.7 as of 2011. This means that someone needs to be able to save enough money for at least 17.7 years. This adds more to our baby boomer issue. There was recently a study done by MIT, showing the living wage rates for an individual or family. This matters as we cannot create a program that will place someone into poverty now for a tomorrow that is not promised. This doesn’t mean we don’t think about tomorrow but we need to put it in perspective. With all of this data I think we can create a new system that is not only feasible during retirement age but also allows someone to make a living now. Now we need to look a bit deeper
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