...The Future of Social Security Paula Allen COM 156 December 11, 2010 Joy V'Marie The Future of Social Security Social Security will not meet the needs of the younger generations in retirement because the depletion of funds in the Social Security trusts. The age requirement is predicted to rise to 70 by 2037 for those who can draw full benefits. There are people who survive on their monthly benefits from Social Security, but how long will it be before they cannot live on this amount of money? Under current laws and program benefits, the future of Social Security is unstable unless changes are made. Once the trust funds are exhausted, the funds do not have the ability to borrow money to keep paying benefits to those who receive them. So, what can the government do to protect the future of these trusts and ensure their stability for the future? The minimum age to start drawing Social Security is 62, but to draw full benefits a person must be 66. The current age to draw full benefits is 66 and will change to 67 soon because of the Social Security Amendments of 1983. The majority of American people are waiting to a much later age to retire than in the past. The younger generation of today may not be able to draw benefits until they are 70. Whether people retire early or late, the amount of benefits will equal about the same. Some people may believe that Social Security will meet their needs in retirement. If a person pays in the maximum amount of money, then he...
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...Social Security and Medicare History Present Configuration Future Projection GERO100 March 31, 2012 Hopefully we will all be physically able to work until the age of 65, collect retirement and Social Security and live an enriching life until we leave this world. Not all companies financially support their employees with fully funded retirement plans so it is left up to the individual to actively participate in saving for their future. When someone reaches retirement age, if the finances are there, they are usually only a fraction of what they were making as a full-time employee. This is when one hopes of having Social Security and Medicare benefits to supplement our retirement income for a more stable financial future. There are several reasons the Social Security Act was passed in August 1935. The elderly were living longer due to the availability of better health care, autonomy in workplaces to make jobs easier on individuals, and the modernization of our country’s water systems. Due to this increased longevity in the lives of the elderly, they were also more poverty stricken. An intention of the passage of the Social Security Act was to reduce the burden of loss of income to retired workers aged 65 or older. (Quadagno, 2008) It also included provisions for unemployment insurance, old age assistance and aid to dependent children. Benefits were to be paid based on the primary worker and was to be funded through payroll taxes deducted from the worker’s...
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...December 2014 Social Security and its Deficits In 1935, after bank failures and a stock market crash had wiped out the savings of millions of Americans, the nation turned to their president to guarantee the elderly a decent income. In those days, only a handful of workers had access to pensions from their employers or through State governmental pension programs. Over half of America's elderly lacked sufficient income to be self-supporting. The Social Security Act was enacted at the urging of President Franklin D. Roosevelt to create a social insurance program that ensures workers would have a source of income after they retired. (ssa.gov, n.d.) In the decades that have followed, Social Security has become one of the federal government's most popular and essential programs. Despite all our efforts to encourage savings and investment, the private retirement picture has not changed much in recent decades. Even today, barely half of all workers have access to retirement plans at work, and millions reach retirement age without enough private savings to provide an adequate living in retirement. Social Security is still the foundation for most seniors' retirement. Without this critical safety-net program, over half of all older Americans would fall into poverty. Social Security does exactly what it was designed to do. It gives retired people a secure, basic income for as long as they live. At the end of 2005, more than 48 million people were receiving Social Security benefits: 33 million...
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...A Report on American Economics in English Includes Social Security. 006 American Government-Economics Most of the problems of the United states are related to the economy. One of the major issues facing the country today is social security. The United States was one of the last major industrialized nations to establish a social security system. In 1911, Wisconsin passed the first state workers compensation law to be held constitutional. At that time, most Americans believed the government should not have to care for the aged, disabled or needy. But such attitudes changed during the Great Depression in the 1930's. In 1935, Congress passed the Social Security Act. This law became the basis of the U.S. social insurance system. It provided cash benefits to only retired workers in commerce or industry. In 1939, Congress amended the act to benefit and dependent children of retired workers and widows and children of deceased workers . In 1950, the act began to cover many farm and domestic workers, non professional self employed workers, and many state and municipal employees. Coverage became nearly universal in 1956, when lawyers and other professional workers came under the system. Social security is a government program that helps workers and retired workers and their families achieve a degree of economic security. Social security also called social insurance (Robertson p. 33), provides cash payments to help replace income lost as a result of retirement...
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...A Broken System SOC 304: Social Gerontology October 29, 2012 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 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 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. (Smith, 2010) Several Social Security professionals think the system is in crisis because it will soon be incapable to...
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...Social Security Debt The biggest part of the federal budget of America is the Social Security; social security is the benefit for seniors which they get part of their income after their retirement, so this benefit prevents them from working after a certain age. The seniors who actually benefit from social security used to pay it from each check that they got in their past labor life. However, the actual situation of social security is partly different from years ago; there is not enough labor force to pay for this benefit, which means that social security, is paying more in benefits than getting revenue to support future beneficiaries. As a result, most of our seniors have to work harder than they were younger to try to live a life away from debts. Nevertheless, there are ways to reduce this debt by informing its...
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...Social Security and Private Retirement Accounts Kivi Poteat Econ 2302 Central Texas College October 31, 2015 Abstract With dwindling Social Security funds provided by the Federal Government, they are sure to run out in the future. Younger generations need to consider alternative methods. One of these methods that should be looked into is personal retirement accounts. This would not benefit older people much due to their reliance on Social Security, but when young workers reach retirement age, it would be greatly beneficial. Investments are something that requires much knowledge and experience, but the returns on private accounts are much higher than Social Security could offer. Private accounts also do not hold the risk of government...
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...Financial benefits provided by Social Security are endangered. In his third year of presidency, Franklin D. Roosevelt pioneered the inception of the Social Security program in 1935. Our 32nd president decreed, “[The basis of Social Security was] to give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age” (Borick, Russell, & Shafritz 2012, p. 462). Since then, the Social Security (SS) program has paid benefits on a timely basis through to a plethora of American citizens. This program provides income for workers who have reached a certain age, have become disable, or have died on a monthly basis. Unfortunately, these benefits now face a dire crises—depletion. The problem is that projections of the program financial status provided by the Social Security Board of Trustees predict that moneys invested could be exhausted by year-end 2016....
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...Modify Social Security During the depression, Franklin D. Roosevelt introduced the Social Security program in hopes of it providing insurance to what would inevitably happen in our lives. Established in 1935, it was geared to be solely a retirement program and quickly in 1939 added survivor benefits to the list; then insurances for the disabled in 1965. The original purpose of Social Security Act was to establish a system for the old-aged and adequate provisions for survivors of the dead and the disabled. The Act itself had good intentions of creating a sound Social Security board and increase revenue. According to www.ssa.gov, “The new social insurance program the Committee on Economic Security (CES) was designing in 1934 was different than welfare in that it was a contributory program in which workers and their employers paid for the cost of the benefits--with the government's role being that of the fund's administrator, rather than its payer. This was very important to President Roosevelt who signaled early on that he did not want the federal government to subsidize the program--that it was to be "self-supporting." He would eventually observe: "If I have anything to say about it, it will always be contributed, both on the part of the employer and the employee, on a sound actuarial basis. It means no money out of the Treasury."” From the time the Social Security program was establish in 1935 to 1960’s the payroll taxes increased from 2% to 6%. Then in 1972 the cost-of-living-adjustments...
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...Social Security History, Current Structure and Calculation of Benefits The Social Security Act was implemented in 1935, after the stock market crash had wiped out the savings of millions of Americans, the nation reached out to their president to guarantee the elderly a decent income. The original Act provides retirement benefits payable to a person 65 years and older who were no longer working. There were very few people that had access to pension from their employers and through government pension programs. Most of the elderly lacked enough income to be living on their own without working. The Social Security Act was enacted at the urging or President Franklin D. Roosevelt to create a social insurance program that ensures workers would have a source of income after they retired (2010). In the years that have followed, Social Security has become one of the Federal Government’s most popular and essential programs. Despite all efforts to encourage savings and investment, the retirement picture has not changed much in recent years. Today even barely half of the workers have access to retirement plans at work and millions reach retirement age without enough savings to provide sufficient living. The Act also provided funds to assist children, disabled like the blind, the unemployed and provide family health programs. The placement of Social Security brought complex challenges to the administration. The administration had to register citizens for benefits, contributions...
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...Above all, it is evident that the Social Security Act was a New Deal program that managed to change the way retired and old-aged persons are supported. Prior to the Social Security Act in 135, Old Age Pensions that were enacted in 1908 were deemed the foundation of social welfare, though there had been minimal improvement throughout time. In otherwise, support for the elderly and some other dependant parties were more of a local or family concern rather than a Federal one. While there were endless new options to grant young men jobs and support agriculture businesses, aging generations were seemingly deemed unimportant to the adaptations being made for the future. This program served the purpose of thinking about our tomorrow and how we will continue to work efficiently at an old age....
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...which control the the regulation Social Security Administration for this assignment, it is a federal government agency. 1 Interesting : Am interested in the Revised medical criteria for evaluating mental disoders proposal due to the fact that the Social Security Administration affect the lives of most Americans and proposed changes will impact many citizens. The proposed regulation will not affect me or affect my business, because am into car retailing business and the proposed Social Security regulation does not have direct impact on the retailing business. 2 Proposal/Change A proposal to revise the criteria impairment listings used to evaluate mental disorders in adults and children pursuant to Titles II and IVI of the Social Security Act. This proposal also includes removal of certain sections of the regulations and include them in other sections of the Social Security Administration regulations. The reason for the proposed changes is the result of adjudicative experience and advances in medical knowledge recommended in a commissioned report and comments from experts of the field and the public. 3 Public Comment : As I know a mental disorder child who also receiving Social Security benefits, I am in agreement with the proposed changes. The revision stating that the Social Security Administration will recognize non-physician sources, such as therapists and social workers will be helpful in assisting claimants in the future. As stated in the proposed changes...
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...Collection Action and Social Security Collecting bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are presented by a representative of a union to which the employee belong. The United States implemented the National Labor Relations Act of 1935. I learned that collective bargaining benefits employees in the following ways, provides opportunities for workers to voice their problems or issues related to employment and the capacity to arrive at an arrangement on wages and other conditions of employment. Social Security is the foundation for a comfortable retirement. The Social Security Act was finalized in 1935. Social...
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...with Rampage Chapter 14. I want the reader to understand the pro and cons of using privatizing Social Security. 2. What was the most challenging part of writing this paper, and why? Explain. For me it was sitting down and gathering my thoughts. I had a trying schedule with work and needed that time to myself to make it happen. I do have an opinion and I find it difficult to put them aside and argue both sides. 3. What do you see as the strengths of the paper, and what would you try to do if you were to revise it some more? The strength of my paper I feel is that it gives legit and strong facts of the pros and cons of the topic. If I could tweak it some more it would be to not personalize it as much. 4. What is not a part of your paper that you think might help a reader understand or appreciate it more? What didn't you put in? Are there certain events or feelings or memories that led you to write on this topic or to take this approach? What kind of feedback or response would you like from your reader? I think this essay will definitely bring to light the future of social security. I think that individuals don’t know that they could lose their money if they do not take the time to learn the benefits of the programs to include privatization. Jabari Williams Professor Houston English 102 25 January 2011 Social Security-Privatize or Not? Should Social security be privatized? In order to understand if it is good for the masses, you must understand what...
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...Special Topic 2 The Economics of Social Security Critical Analysis Questions 1,3,4,5,6 Social Security is not based on the same principles as private insurance. Private insurance and pension programs invest the current payments of customers in buildings, farms, or other real assets. These real assets generate income that allows the insurance company to fulfill its future obligations to its customers. Social Security taxes current workers and uses the revenues to finance benefits for existing retirees. Social Security has been a good deal for present and past retirees, however, it is not a good deal for today’s middle aged and younger workers. Those who retired in the 196’s and 1970’s received real benefits of three or four times the amount that they paid into the system, which is way better than if they had invested the funds privately. Future retirees can expect to earn a real rate of return of about 2 percent more on their Social Security tax dollars, which is way less than what they would earn from personal investments. I believe today, we should be permitted to invest our Social Security tax dollars. Because of the shorter life expectancy of blacks, the Social Security system adversely affects their economic welfare. Compared with Whites and Hispanics, blacks are far more likely to pay a lifetime of payroll taxes and then die without receiving much in the way of benefits. On the other hand, Social Security is favorable to Hispanics because of their above average...
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