...Social Security Planning Even though Social Security was designed to take care of us in our retirement years, a secondary retirement income to coincide with our social security is an extremely important consideration if not a necessity. One has to take many considerations that into account when deciding whether or not to plan a secondary income source to coincide with their retirement benefits. Tax rates, inflation, Cost of Living Index and even geographic location play an important role on the ability to live comfortably on social security in retirement. Other things that need to be taken into consideration are not only current economic criteria but future economics as well. Many analysts predict, using current data and future projections, that by the year 2044 the Social Security Administration will no longer have any funds, in which to disburse to retirees. When talking about retirement planning, one has to begin by being aware of and understanding economics and how these affect not only current, but future trends. Quite a bit of information is available at the Social Security Administration Official website – www.ssa.gov. From this site one has access to different financial calculators and other resource links, one of which is a very detailed downloadable retirement planning guide, entitled – Taking the Mystery out of Retirement Planning. This guide has been developed by the U.S. Department of Labor, Employee Benefits Security Administration and its partners. Another...
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...Social Security Benefits Americans have worked hard for centuries and always have had worries about how will they support themselves when they retire. To help aid retirees, in August 1935, the government established the Social Security Trust fund for retired workers, unemployment insurance, benefits for victims of industrial accidents, the blind, aid for dependent mothers and children, and the physically handicapped(Historical Background and Development of Social Security, 2010). However, the Social Security system is facing serious financial problems due because of a lack of jobs, high unemployment, and layoff rates. So there is no guarantee that Social Security benefits will be available for them when they retire, and therefore should not be used for their retirement safety net. In 2016, the Social Security system will begin paying more in benefits than they collect in taxes (2009 OASDI Trustees Report, 2009). Without changes by 2037, the Social Security Trust Fund will become exhausted and they will only be able to pay out 76% of scheduled benefits (2009 OASDI Trustees Report, 2009). If changes are not made be 2037, many Americans may have to work long into their retirement years because only receiving 76% of their benefits will not be a sufficient income. Most Americans, do not think that they will have to work extra years before they can retire, but with the average life expectancy in the United States currently at 78 years (CDC Centers for Disease Control and Prevention...
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...In Antigua when the Social Security Act was introduced in 1973, it was on the principles of Beveridge’s model of Universality, Solidarity and Equity, and to today those principles still hold true. At, first the populace was skeptical about this ‘new tax’ and thought that this was just another scheme for the Government to get their hands on their monies, so much so that if deductions were not compulsory, many persons would have refused to pay. But over time this thinking seems to have come to life for although the Regulations allows for a board of control, there seems to be no control. Social security act, Cap, 408 (1) 4 states ‘there is to be established a board to be called the Social Security Board of Control in which the fund shall be vested and which shall, subject to the provision of this Act, be responsible for administering the Fund.’ Apart from that we are aware that the board’s functions also include hiring, firing and Policy making it also has a responsibility to its stakeholders to ensure that their funds are properly invested in a manner that will ensure the scheme remains viable.. The two top position on the board that of Director and Deputy, are government appointees who it is believed are ‘political cronies’ who can be easily manipulated by the minister in charge of S/S i.e. the minister of Finance. So the boards seem to have no autonomy as they appear to be doing the biddings of the political directorate. The corporate directors guide book states that...
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...on their investment and are forced to keep working just to eat. This future sounds farfetched, but unfortunately, it is the direction our nation is heading if no reforms are made to our Social Security system. Rising healthcare and living costs, along with an unbalanced worker to retiree populace, have begun to deplete the once trusted mode for retirement. If no resolve is reached, the Millennial generation will be forced to come up with their own ways of saving for retirement like collecting change. The depletion of our Social Security system is my generation’s most severe issue because there may not be enough money to take care of senior citizens into retirement age. Signed into effect August 14, 1935, the Social Security Act insures senior citizens monetary stability after their retirement. The way this system operates is the working class pays a partial tax on their income to the government, who then allocates the money for those who have retired. Essentially, the generation that is currently working will pay for the generation that has retired. A retiree will receive benefits such as coverage for disability and monthly payments given as a source of income for those who do not or cannot work. In today’s society and economy, retirees heavily rely on the compensation they receive from Social Security. It gives not only the elderly, but also millions of citizens who work and pay into the system, the satisfaction of knowing they can be comfortable in the future. The problem...
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...In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. Social security will post nearly $600 billion in deficits over the next decade as the economy struggles to recover and millions of baby boomers stand at the brink of retirement, according to new congressional projections. The funds that Social Security has save to payout their beneficiaries have an expiration date. In the upcoming years more people will be eligible for retirement. Many of them will only be pay 78 percent of their benefits. The government needs to find solutions for the upcoming deficits and be able to help Social Security Administration to no run out of funds. In 2011, Social security administration will collect about 4.6 million retirement, survivor, and Medicare claims. 3.3 million Social Security and SSI claims and 326,000 SSI aged claims, (Social Security, 2011). These claims have to go to procedures that can take months to be approval. During these procedures, many more applicants are eligible to apply for social security and more money is pay to beneficiaries. Social Security Administration has being able to save and invest taxpayers money into U.S. Treasury department. The money...
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...someone talk about our Social Security program. Seeing that we are getting ready for the upcoming presidential election, the subject of what to do with our Social Security is definitely on everyone’s mind. Social Security is a crucial portion in any business compensation package. It is something that we cannot do without, or can we? So what’s wrong with our Social Security program? Talk to several different people and you most likely will not get the same answer. As the following pages unfold, you will have a snapshot on the background history of the program, a view on what is wrong, and some possible solutions. The need for economic security can be traced back to the early Greek civilization, who stockpiled olive oil as a way to secure their future. The groundwork for a public system of economic security could be seen during the late 1700’s, as Thomas Paine, a Revolutionary War figure, published a business proposal depicting the need. The Civil War era saw the creation of pension plans (mainly military). It wasn’t until 1906 that “old age” was added to the means of obtaining a pension. Significant events in our history were a preview for the creation of our Social Security program, as we know it today. President Roosevelt signed the executive order for the Social Security Act, on 14 August 1935. As Richard Henderson states in his book titled Compensation Management in a Knowledge-Based Word, the passage of the Social Security Act in...
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...Microeconomics Essay Assignment. 10/23/15 Social Security What is social security? What is the importance of social security in a citizen’s life? Different type of questions occurs when we discuss about the social security. This is one of the problems that United States has faced is their economy, but then again every country faces these kind of problems. Social security future solidity is one of the major issues in United States. What are the requirements for receiving social security benefits? How long do they prolong? Technically social security is a government program that helps workers and retired people and gives them benefit to spend the rest of life. Social security has different types of branches or different types of benefits we can call them. It is not only for retired people, it also helps people with disability, and people with no jobs. The benefits that come with disability and unemployment are limited. For example, its common sense if you find a job back you won’t be getting unemployment benefits, and if people that are disable start to show improvement in their health, their benefits will be terminated. Is the working population big enough to support the social security program for the future? However, there are costs and benefits for keeping this program. Is it possible that something else can be added to the social security program to help people more? Issues A lot of people these days’ worry about how to fix the social security issue. This is totally the wrong...
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...Americans hold a generalized view that retirement age is 65 years; in recent years, we have realized that most people will experience far greater life expectancies than previous generations, which means minimum retirement age must also grow (Dohm, 2000). Since retirement age is increasing, along with the average age of the population, serious concerns arise relating to whether the economy can support this generation of Boomers who are only beginning to draw on social security and pensions (Dohm, 2000). These real concerns affect everyone from the Boomers who face an unstable future to the younger generation who will have to take on the burden of future economic strain in the wake of the Boomers (Dohm, 2000). We can only speculate about what will happen to the economy and to society as Boomers reach retirement age, as many members of this generation are just approaching retirement age. One of the biggest concerns regarding retiring Boomers is how the economy will react. Because the basic systems of American healthcare and social security are flawed, it is incredibly difficult to predict what will happen in the future (Colliver, Compton, & Conden, 2006). Many experts claim that aging Americans will rely solely...
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...Social Security and Medicare Currently the Social Security Trust Fund is in a surplus, more monies are contributed to the fund then going out to beneficiaries. However, as the number of retirees increase and the number of workers decrease the Social Security Trust Fund becomes depleted quickly, in other words a deficit is created. The future for Social Security is going to have to borrow monies to continue with the current benefit structure, will have to restructure the benefit package, or possibly raise the retirement age to accommodate the increase in beneficiaries, to name a few possible changes. Social Security is far from a crisis but the state of Social Security is headed towards a deficit and into debt. It is estimated that Social Security will continue with a surplus until 2020 and eventually depleting around 2040 (Colander, 2010). The U.S. government is going to have to make adjustments to the current system to ensure that funds will continue to be available to future retirees. Along with the Social Security future going from surplus to deficit and debt is the growing concern of Medicare. As of 2004 Medicare funding by the U.S. government has been increased with the expansions of coverage (Colander, 2010). The growing rate of retirees and the need for medical care and drugs has increased. The future of Medicare is uncertain as medical expense increase and the amount spent per individual using Medicare increases funding is utilized faster. Funding for Medicare...
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...Future Social Security and Medicare Users The deficit in the U.S. federal budget is caused by the higher government expenses than the revenues collected for the year. Every year, the deficit in the budget increases the debts greatly as federal government gets loans to meet the deficit in the budget. A form of the loans got by government is the funds, got by social security trust funds and received as government account securities. Government deficits are not affected greatly by these loans as they are in the possession of government, but the baby boomers near their retirements might be affected. At their retirement, people requests for retirement incentives and other benefits that decreases the fund of social security. The funds for older people and social security funds or disability insurance and the insurance trust fund of survivors are not included in the budget of government and obviously not taken as revenues. Department of Treasury is responsible for dealing with these funds under a different account and keeping record and monitoring the funds in and out flow of the funds account of the trust. Moreover, with monitoring funds, the trust also gives automatic disbursement and expending power to play incentive and other welfares to retire-employee (old age) recipients on monthly basis, their families, and to families of late insured employees” (Social Security, 2011). Unemployed Individuals Individual employees are affected by the U.S. deficits, surpluses, and debts...
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...In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. Social security will post nearly $600 billion in deficits over the next decade as the economy struggles to recover and millions of baby boomers stand at the brink of retirement, according to new congressional projections, (Ohlemancher, 2011). The funds that Social Security has save to payout their beneficiaries have an expiration date. In the upcoming years more people will be eligible for retirement, however, many of them will only be pay 78 percent of their benefits, (Ohlemancher, 2011). The government needs to find solutions for the upcoming deficits and be able to help Social Security Administration to no run out of funds. Issues In 2011, Social security administration will collect about 4.6 million retirement, survivor, and Medicare claims. 3.3 million Social Security and SSI claims and 326,000 SSI aged claims, (Social Security, 2011). These claims have to go to procedures that can take months to be approval. During these procedures, many more applicants are eligible to apply for social security and more money is pay to beneficiaries. In 2011, social security will collect $45 million less in payroll that it pays...
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...Is the Social Security System broken? Problems with the Social Security System Intermediate Macroeconomics Problems with the Social Security System The Social Security System, created in 1935, is the one of the most costly items in the federal budget today. The program was created to provide old age, survivors’ and disability insurance to a large portion of Americans, mostly the elderly who are now out of the work force. The Social Security Act was a major turning point in American history (William, 2007). Today the U.S. Social Security system has been in the news a lot lately. While politicians throw around dramatic words like “crisis” and “bankrupt,” regular Americans have more mundane concerns. Social Security has assisted to defend millions of employees from scarcity in their elder years, but demographic truths have transformed over the last seventy years and are still altering. (Smith, 2010) If Social Security does not transform with them, the system will be incapable to fulfill its guarantees to tomorrow’s retirees and will load the next generations, our children and grandchildren, with hard taxes. The President would let Americans save some of their Social Security taxes in personal retirement accounts that they own and that Congress can never legislate away. Personal retirement accounts would strengthen Social Security by assisting all US citizens to raise their retirement income and pass on a nest egg to construct a better fiscal future for their households...
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...The failure to fund the Social Security system properly has resulted in a situation where the system will go bankrupt in the relatively near future. The privatization is the best way to ensure the future's of Americas senior citizens. After 2013, the Social Security Trust Fund is projected to decline by a greater amount each year until becoming exhausted in 2033. Social Security is a wonderful benefit for those who deserve it like long term workers, the elderly, etc. For as long as the baby boomers do not come back around like it's subjected to, the US is already in debt and Social Secuirty will be next. I agree with social security for the fact that it does help elderly and the workers who have worked their whole life, they deserve to get something back for their troubles and all the years they've put in. Social security does get taken advantage of though which is a downfall because there are workers in households who will only work for a month or two and then expect to be put on a social security check and not deserve it. In general, recipients begin to receive disability benefits after they have been disabled for five full months whether their disability be true or not. Those households are the ones who are putting America more and more in debt because those who are working are paying into their funds. In 2010 roughly 1,500 federal employees may have improperly received benefits based upon their wages exceeding maximum income thresholds. Disability benefits are calculated...
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...Our Social Security program is in serious trouble. What is the solution? One possible answer is to look towards the privatization of funds. Pick up a magazine, newspaper, listen to the radio, or even turn on the television and you can’t help hearing someone talk about our Social Security program. Seeing that we are getting ready for the upcoming presidential election, the subject of what to do with our Social Security is definitely on everyone’s mind. Social Security is a crucial portion in any business compensation package. It is something that we cannot do without, or can we? So what’s wrong with our Social Security program? Talk to several different people and you most likely will not get the same answer. As the following pages unfold, you will have a snapshot on the background history of the program, a view on what is wrong, and some possible solutions. The need for economic security can be traced back to the early Greek civilization, who stockpiled olive oil as a way to secure their future. The groundwork for a public system of economic security could be seen during the late 1700’s, as Thomas Paine, a Revolutionary War figure, published a business proposal depicting the need. The Civil War era saw the creation of pension plans (mainly military). It wasn’t until 1906 that “old age” was added to the means of obtaining a pension. Significant events in our history were a preview for the creation of our Social Security...
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...10/08/12 Social Security Paper A brief introduction to the topic of United States Social Security program tells us that it came from the “Old-Age, Survivors, & Disability Insurance” federal program and is meant to provide welfare. There were actually a few similar precursors to what we know as social security, one example being a pension program following the American Civil War. After the Civil War there were hundreds of thousands of widows, orphans, and disabled vets. Even before this, an article informed me that the first national pension program began in early 1776; prior to the signing of our declaration. Not long after the Civil War had ended, America began to rapidly change. This had a lot to do with the Industrial Revolution and the urbanization of the population. This led us to stray from an extensive agrarian family unit that could support their elders to a more condensed American family living in cities. Combining demographic and social changes (including the increase of life expectancy by roughly 10 years), America had fewer and fewer people living on the land, and more of its population in the cities. Unfortunately, this led to a “fragile” provision of economic security. Social Security itself was created on August 14, 1935, when President Roosevelt signed the Social Security Act. Not only did this new legislature help with the general welfare of the public, but it also provided a way for retirees over 65 years of age to receive a continued form of income...
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