Summary: The Universal Flat Rate Contribution

Current numbers show substantial growth from the eighties, and estimates suggest that the demand for long term care among the elderly will more than double in the next thirty years. (Feder, Komisar, and Niefeld) This growth will exacerbate concerns about balancing institutional and noninstitutional care, assuring quality of care, and most importantly adopting and sustaining financing mechanisms that equitably and adequately protect the elderly who need long-term care.

The people from the baby boomer generation are all nearing, if not already in, retirement and old age. Over the next 20 years the amount of elderly people of retirement age is supposed to increase somewhere around 50%. Because of this imbalance there will be a lot of money being directed toward taking care of the baby boomer generation which may lead to decreased funding for younger generations. The baby boomers will all retire around the same time, leaving jobs unfilled. There may also be troubles in the housing market as there may not be enough young people to buy all the houses they sell. The number of immigrants in America are increasing and replacing the baby boomers in being the dominating group in our population.

Another way the economy will suffer is through the increase need for health care and elder care. As the baby boomers get older, their need for these types of expenditures will increase as well. Consequently, this increases the national health care spending too. Another problem is that governmental entities will start to lose tax revenues that the baby boomers provided so considerably. There will also be an increase in the federal budget deficit. The government will be spending more while receiving less revenue from the baby boomers. Younger generations can expect tax increases to help cover Social Security and Medicare. Even after all of these problems, there is still the burden that the baby boomers are going to leave for the current generation and the ones to follow. This will then lead to lower average of living standards for the baby boomers, and the major assets of the baby boomers will begin to decrease in value since more people will be trying to sell their assets than people willing to buy them. Retailers will also be affected negatively by this movement. Retailers can expect to lose revenue since the baby boomers will probably not spend as much, and marketers will have a difficult time searching for more sources or creating new ideas to attract the younger generations. Although there have been efforts at correcting the problem with the graying of America, governmental reform is necessary to avoid the storm of

One of the biggest issues that will be affected is Social Security benefits and medical care for everyone. Today twelve percent of the total population is age 65older; by 2080 it will be up to 23%. However at the same time the working-age is shrinking every year, right now the working-age it is 60% and it is believed to drop to 45% by 2080. Social Security is experiencing low work-to-beneficiary ratio which will fall from 3.3 percent in 2005 to two percent in 2040. That is the year that is believed to be when the Social Security trust fund will have been exhausted. Due to this there will be significant challenges that policymakers and all future Americans. Because of that policymakers are now encouraging many to delay retirement and some people are even suggesting that retirement benefits be lowered the main reason for the suggestion is people are living longer than they used to.

Between 2000 and 2050, the number of ageing population will increase by 135% During this time period, the proportion of the population that is over the age of 65 will increase from 12.7% in

flip side of the baby boom as boomers retire and age. As a result there will be less tax revenues because of the large number of boomers retiring. The employment rate will drop four percent from now to 2020 which means the government will receive twenty billion dollars less in tax money. (Fortin, 2006. p.1) Another effect will be more health care

14th August 2015 marked the 80th anniversary after President Franklin Roosevelt signed the Social Security Act in the year 1935. The program has been important in alleviating poverty amongst the elderly population. However, the system has started to how its age. The OASID (Social Security and Disability Insurance Trust Funds) is presently running on cash deficit as the baby boomers retire. The DI (Disability Insurance) program has been running on deficits for several uses and has been predicted to exhausts the trust fund. The social security provides important income security to millions of the beneficiaries but is on towards insolvency. Presently, the Social Security program pays more in benefits that it is collecting in revenue and has been projected that the trusts funds will run out in the year 2033 (Bernan Press, 204). At this instance, all the beneficiaries regardless of income and age will face an immediate twenty-three percent benefits cut. The longer term OASI would need more than a 4 percent point rise in the payroll tax so as to close the gap in funding over the next 75 years or benefits would have to be reduced below the promised 27 percent level by the year 2090 (Bernan Press, 2014). The focus of the paper is on the issue of solvency of social security fund

The retirement tack boomers end up taking in coming decades will have a profound, but unknown impact on the economy. As Peterson says, “The forecasts range from impending doom to marketplace godsend.” Some predict that as baby boomers retire unemployment will fall and that this process should begin by the year 2002 and that labor shortages should emerge about 2005. This will continue to get worse as the number of people who retire exceed the number who enter the workforce (Generation).

Evidence of retrenchment measures such as austerity can be seen in many contemporary examples, one of the biggest areas at the moment of the government’s public sector spending cuts is undoubtedly social care cuts and reductions. It is said that more than £1bn will be cut from social care services for older and disabled people in England over the next year (Butler, 2015). Consequently leaving tens of thousands of elderly people without help or a massive reduction in help with basic tasks such as washing, dressing and eating. However, despite the rising demand driven by an ageing population, fewer people will qualify for state-funded care while those who continue to receive a service may have to accept lower levels of support and a worse quality

Ageing people will receive superannuation and age pension after retirement, and the unemployed can apply for a small amount of allowance every two weeks. There are also many kinds of special benefits for the homeless and low income families. It seems that Australia’s welfare system is relative perfect and can ensure the fundamental living standard for everyone. However, a few social problems have emerged in the welfare society over the years.

According to the U.S. Census Bureau the number of people 65 and older will possibly double by the year 2030. According to Yager (2008) forecasts are showing that the United States could reach a labor shortage by 2030. As

Over the years, there have been major shifts within the United States in regards to its population. Statisticians have estimated that 20% of the population will be 65 years of age and older. There is an even

Statics stated by 2020 the labor force is projected to reach more than 146 million U.S. citizens, a 5.9 percent from today. Economists predict the labor force participation rate will decrease over the coming decades, as an aging

From 1970 to the year 2000, the world's over-60 population is projected to increase by more than 90 percent" . This is an astonishing number, seeming how the total population was predicted to grow by less than 75 percent . "The most prominent feature of the looming shift in the composition of the working-age population is, of course, its increasing age" . It is hard to say what will happen when suddenly there will be an abundance of older people who are preparing to retire.

The significant policy worries pertinent to health and long life are the impending economic viability of pension,