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 received by the Federal Government and had to send payments to the recipients. Prior to Social Security, the elderly routinely faced the prospect of poverty at retirement (2010). Social Security was designed for a world that is very different from today. In 1935 most women did not work and today about 60 percent of women work outside the home. Also back in 1935 the average American did not live long enough to collect benefits, today the average American lives to the age of 77 according to the Social Security Trustees report. The current structure of the Social Security Act has been reformed numerous times throughout history, often in response to the deteriorating program finances. The funds that Social Security has saved to payout their beneficiaries have an expiration date. In most years more people will be eligible for retirement however, many of them will only be paid 78 percent of their benefits, (Ohlemancher, 2011). The government needs to find solution for the upcoming deficits and be able to help Social Security Administration to not run out of funds. The money that Social Security invested in the treasury department is not physical available for Social Security beneficiaries. The $2.5 trillion had been borrowed over the years by the Federal Government and spend on other programs. In a promise to pay off the surpluses, the Treasury department has issued bonds to Social Security, guaranteeing payments with interest (Ohlemacher, 2011). If the Federal Government continues to borrow from Social Security there is no way that it will obtain any money to pay the beneficiaries because there will be no money there unless the Federal Government pays off the debt to Social Security. This can cause delay payments and future applicants for Social Security benefits. Social Security will face deficit in the following years if congress does not take action to solve the future finances of the Social Security Administration. If the Federal Government does not find a solution to pay off Social Security, the money can run out by 2037 (Ohlemacher, 2011). The funds that Social Security currently has will be able to last for the next few years but it will have to start pushing the Federal Government for the money that is has been using to invest into trust funds. The U.S. needs to help their people first before helping others. If the government would make cuts in foreign aid it can save million sof dollars, this doesn’t completely solve the future deficit of Social Security but it helps from the government having to borrow more money from it. Social Security is more than a retirement program because you may receive Social Security if you are disabled, a spouse or a child of a worker whom passed away, a dependent parent of someone whom passed away. Depending on the situation you may be eligible for Social Security at any age. Social Security in fact pays more benefits to children than any other government program (2015, June 1). The benefits of Social Security are retired worker, survivor benefits , disability and Medicare. Average monthly benefits for retired worker is $1,328, retired couple $2,176, disabled worker $1,165, disabled worker with a spouse and child $1,976, widow $1,274 and widow with two children $2,680. Medicare has several parts to it, hospital insurance helps pay for inpatient hospital care and certain follow ups (Part A). Part B helps pay for doctors’ services, outpatient hospital care and other medical services. Part C is Medicare advantage plans that are available in many areas, people with parts A and B can choose to receive all the health care services through a provider under Part C. Last Part D helps pay for medications. Social security was not meant to be the only source of income for people. Social Security replaces about 40 percent of an average wage earner’s income after retiring, and most financial advisors say retirees will need 70 percent or more of pre-retirement earnings to live comfortably. To have a comfortable retirement, Americans need more than Social Security (2015, June 1).

References
Citing Records in the National Archives of the United States. (2010). Retrieved November 11, 2015, from http://www.archives.gov/publications/general-info-leaflets/17-citing-records.pdf

Ohlemacher, S. (2011, October 19). Social Security recipients to get 3.6 percent more. Retrieved November 11, 2015, from http://www.benefitspro.com/2011/10/19/social-security-recipients-to-get-36-percent-more

Understanding The Benefits. (2015, June 1). Retrieved November 11, 2015, from https://www.ssa.gov/pubs/EN-05-10024.pdf

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