The Future Of Social Security

The Social Security system is perhaps the most successful government social insurance program in the nation 's history; and began with the Social Security Act in 1935. Social Security is a needed federal system that encourages income stability to millions of people across the United States. This is accomplished by giving a stable flow of income to replenish lost wages that occur as a result of disability, retirement, or death of a family member. There are about 59 million people in the U.S. that receive Social Security. Most of them are the required 65 years of age or older. Sadly about half of the 59 million people rely solely on Social Security to pay their bills and everyday necessities.

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

Roosevelt and his Economic Crisis Committee, in 1935, came up with the simple idea of providing benefits to the generation of retired workers from tax money of currently working generation. Roosevelt put this straightforward idea into the system to make it work, and it surprisingly has worked out well so far. When the bill became a law in 1935, there were many people who were affected by the Great Depression and sought financial aid. Unlike the bank money that goes in loans and still depositor have access to the money; Social Security System passes out collected money immediately into benefits (“Social Security System”). This way, the working generation will always provide enough money to the fund. Rather than providing money from government fund, idea of benefiting citizens from their own money didn’t receive

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

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.

Social Security currently extends benefits to about 61.9 million people. In 1935, when it was first created, under 225,000 people received benefits. President Franklin D. Roosevelt created the program during the Great Depression. This was during a time period of economic instability and extreme poverty rates. It was created to help reduce the amount of retirees living in poverty. This program significantly helped to keep retirees off the street who lost their retirement fund during the Great Depression. Later, other programs including Medicare and Federal Old-Age, Survivors, and Disability Insurance were introduced. Social Security is currently the largest and most expensive government run program. Each paycheck an employee receives has a

However, it is just more than a retirement plan; it is a form of life insurance, and disability insurance for workers and their families. The reason it has become the single most important source of income is that people are saving less, and pensions are on the downfall and unreliable. However, with that being said, I still believe that Social Security is a great government program and it should not be so heavily relied on for income by Americans. It is our own responsibility to save/invest money for our retirement. Some may say it is impossible to save, but there will always be ways to save money. Social Security policies should not be amended again so that it increases the amount people receive unless they up the cap limit on how much one can contribute to the fund. This program protects the elderly from receiving income that is below the poverty level; nearly 40% of elderly would be below that level (Quadagno: 100). The policies in place for Social Security have saved many elders from being below the poverty level. In my opinion, this statistic proves that the policies within Social Security are

The American Social Security system is projected to help people with limited financial resources, including the poor, the physically disabled, the mentally ill, and the elderly (Grabianowski 2015). It was created in response to the pervasive poverty during the Great Depression to provide workers with a basic level of income in retirement, as well as disability pay and life insurance while they work (Kessler, 2014). In addition to providing benefits for workers, it also covers their dependents, immediate family members, and even divorced spouses, at the time of serious accidents or illnesses (Kessler, 2014). The first widespread social security program I America was the Civil War Veteran pensions in 1982 that supported injured Union veterans or to their widows. This plan expanded in 1910 to include Civil War veterans and their survivors (Social Security Administration). As America went into economic recession following the stock market crash of 1929, the Great Depression brought a strong focus on the need for a comprehensive system that provided assistance to the poor and elderly, so they could live independently (Social Security Administration). In 1934, President Roosevelt formed a Committee on Economic Security (CES), who came up with a plan that allowed workers to put a small percentage of their pay into an aggregate account that could be drawn when they retired, to help meet their monthly expenses, which became the Social Security Act (SSA) in 1935 (Social Security

Many Americans believe that the social security program will face a crisis in this century because of funds running out. The fear of the people is that he government’s funds will be bankrupt when those people try to retire. Already a quarter of most Americans believe that they will receive no benefits from social security; what can we do about the social security problem? The reason that the problem is occurring is because of pay-as-you-go financing, demographic changes, the adoption of wage-indexing of the benefit formula in the 1970s. Due to the baby boomer generation, there are more americans retiring than ever. The younger generation has to pay for the older people retiring, but the problem is that there are less young people entering the

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 contribute through payroll

This is the most pressing problem because since 2010, the Social Security Administration has been collecting less money in taxes than it needs in order to operate. This was the first time since 1983 that the they were giving out more money than they were taking out. Because of this, the agency had to begin tapping into its $2.7 trillion trust fund sooner than it had previously expected. The trust fund isn’t expected to be depleted until 2033, after that the agency says tax income under the current system will only cover about three-fourths of benefit payments through 2087. Employees today pay more in Social Security taxes than previous generations did. Aside from that, they’re also likely to get smaller benefits compared to the taxes they paid in when it is their turn to retire. Workers now pay 6.2% in payroll taxes, this is nearly double the 3.6% tax rate workers paid in 1965. Since then, the maximum earnings eligible for taxation has also increased from $4,800 (equivalent to about $35,400 in 2013 dollars) to $113,700 in 2013. As you can see, todays young working americans are paying for way more than they will receive and yet Social Security is still

In 1935 the United States was in the throws of the worst economic depression our country had ever seen. The President at the time was Franklin Roosevelt. As part of Roosevelt's "New Deal", he instituted Social Security, which established an old-age pension system, to be administered by the federal government, and financed by taxes on both employers and employees. This system was to help the older citizens and dependents of workers of the U.S. However, since its inception, Social Security has been turned into a retirement plan of sorts. Many retired and older citizens rely solely on Social Security benefits to live. The program has been successful for the last 64 years, but in the near

At the forefront of many political and economic debates is social security’s insolvency. The number of social security beneficiaries compared to the number of workers is expected to rise 10% over the next 20 years (National Academy of Social Insurance). Specifically, solutions on how to find funding for the program from current workers are being discussed. Concerns about funding social security are not unknown. The unknown is how, if at all, social security can continue to remain solvent. While economists have proposed many reforms, funding social security through an asset tax on working age individuals is the best answer to the social security financing question. Funding the social security

America’s Social Security Program is much different from any other financial security system around the world. The initial framework for America’s Social Security Program modeled German and Bismarckian financial security programs, and its primary goal was to regulate “mandatory social insurance financed from payroll taxes” instead of a model similar to the United Kingdom’s “flat-rate benefits subject to a means or earnings test” (Hoskins). In addition, President Roosevelt stressed the distinction between social insurance and social assistance, expressing “preference for ‘earned rights’...that financing should be based on worker/employer contributions rather than general revenue financing”