Arguments for and against changing Social Security to include personal retirement accounts are discussed as this week’s issue. In my opinion, if, at the time these proposals were written in 2005, they had been put forth by a Democratic White House they may have stood a better chance of gaining some real traction. As was the case, the idea that a Republican administration would really want to ‘save’ Social Security was, I am sure, greeted with a certain amount of skepticism from Democrats and their supporters given the Republican Party’s long opposition and criticism of the program. The very word ‘social’ must drive some right wing conservatives absolutely berserk. The White House, along with the politically biased Social Security trustees’, argue that Social Security is facing a crisis in that “the currently legislated structure of revenues and benefits, the system will eventually be unable to meet its financial obligations” (Bethel University, 2006, p.344). At its inception in the 1930’s, “there were more than sixteen workers to support each Social Security recipient. Today, there are about three, and in 2031, that number is predicted to dwindle to about two (Driscoll & Konczal, 2009). And the number of retirees is expected to nearly double from about 37 million to around 73 million (Driscoll & Konczal, 2009). So how to pay for this? The White House’s proposed solution is to establish individual retirement accounts which would be gradually phased in for younger entrants into the workforce allowing them “to build a “nest egg” for retirement…” (Bethel University, 2006, p.347) while maintaining the existing structure for those 55 or older. Other seemingly attractive features are ownership and control, the ability to in... ... middle of paper ... ...erational social insurance program” (Sloan, 2010). To transform it into some sort of massive investment club instantly gives an advantage to higher-income people over lower-income people as “they won’t need immediate retirement income and can wait out markets” (Sloan, 2010) should the market be in one of its periodic downturns. On the other hand, Social Security, structured as it is, “favors lower-income people-as it should” (Sloan, 2010). And that is a sentiment I share. References Bethel University. (2006). Business, government & the international economy. Boston: McGraw Hill. Driscoll, S., & Konczal, E. (2009). Social Security: Guide to Critical Analysis. Points of View: Social Security, 4. Retreived from EBSCOhost. Sloan, A. (2010). LET’S TALK TURKEY ABOUT PRIVATIZING SOCIAL SECURITY. Fortune, 162(9), 83. Retrieved from EBSCOhost.
This mini-paper will discuss the social welfare system. The mini-paper includes a discussion of welfare Policy, residual and institutional approach, and what is Social Welfare and Social Security. Midgely, (2009), pointed out that social welfare systems deliver services that facilitate and empower our society, especially to those persons who require assistance in meeting their basic human needs. The goal of social welfare is to provide social services to citizens from diverse cultures, and examples include Medicare, Medicaid, and food benefits. Midgley,( 2009).
There are millions of Americans affected by social security. These Americans rely on social security to provide them with financial security. Recently President Bush agreed to proposing a method of privatizing the social security program so that in the future the vast reserves of the social security system would not run out nearly as fast. With the always increasing rise in inflation, and the baby boomer generation reaching ages of retirement fairly soon, this is an issue that needs to be dealt with correctly and rapidly. The way the president is handling the situation is definitely the right way to do it. There are many things and ways in which to do it wrong, but the president seems to be pointing the plans of social security in the right direction. The president’s plans of reforming social security are right because the privatization is the best way to go, changing the rules for those who would apply for it increases the savings and makes the money go farther, and working with the distribution of different tax percentages would really make the money go a lot farther.
Throughout the 20th century governmental responsibility has made remarkable progress. One major milestone of the widening of the responsibility of the federal government was it’s making an obligation to care for the elderly and retired in the form of social security. In 1935, the Social Security Act was enacted by the federal government to provide financial security to the elderly, retired citizens in America. Although the federal government first took on this responsibility in 1935, it is still affecting our lives today. However, social security would not have advanced this far without many organizations and individual reformers to begin and improve social security throughout history.
Social security was designed to assist constituents during financial hardship. The program insured non-Negroes who needed unemployment compensation, met retirement age requirements, or child welfare prevention programs. Despite its forward objective, critics’ perception of the social security program was depicted as legal thievery. M.A.’s candid retort to the government’s evasive program was simply to rape the pocket’s of the people. M.A. as well as others primarily prepared for retirement or a rainy day from stock returns. Contrarily, the social security program stimulated other economic restructures, which included limited full-time workers. The shift in the economy and Roosevelt’s failed promises created a wedge between the people and the government. For instance, Mrs. OM voices her views of President Roosevelt’s campaign as a misleading trick. She further explained
Middle class would benefit the most from reduced social security since they would still have money that could be saved up for retirement. They would not need as much money as low-income workers. Like most solutions, there are
(Transition: So let me start by discussing Social Security and why it is does not work)
Blau, J. (2004). The dynamics of social welfare policy. New York, NY: Oxford University Press, Inc.
Social Security is a system that was set up in 1935 after the Great depression to help people get through tough times. "Social Security is now used by nearly 44 million Americans"(policy.com). Only people who payed into social security are eligible to collect when they retire. Many people think that they receive the money they pay in but that is not total true. The money that you pay in is used for the people that are receiving it now. "In 1950 there were 16 workers for every beneficiary; today there are only three workers per beneficiary"(policy.com). There is more money going into social security then coming out now. The extra money goes into a trust to be used when it is needed. By the year 2032 those numbers are going to drop. By this time most baby boomers will be retired and collecting social security. This will put a big strain on the funds. There will be more money going out then coming in. And it will not take long to use all the money that is in the trust. By the year 2034 they will only be able to pay 75 percent of the beneficiaries. "The projected average monthly Social Security benefit in 2032 of about 1,100 (in 1998 dollars) would fall to about $800, and would drop further in later years. Average benefits for low-wage earners would drop from $670 to $480"(www.ssab). Theses cut would effect the people just starting to receive benefits and those who are already receiving benefits. And with each year these benefits will decrease. As these benefits continue to decrease "the percentage of aged people living in poverty would rise"(www.ssab).Most people believe this is happening because of the baby boomers generation. There will be more people taking from social security then giving in. By the time my generation is eliable to receive social security there may not be any money to give.
Despite the retirement income crisis, Social Security should be expanded, not reduced. In Arthur Delaney’s article on the Huffington Post, Senator Bernie Sanders stated, “With the middle class struggling and more people living in poverty than ever before, we cannot afford to make life even more difficult for seniors.” A push to adopt CPI-E, rather than a switch to a “chained” consumer price index that cuts retiree benefits, would m...
Social Security is on the verge of taking care of the baby boomers generation. This means that it will be paying more benefits than taxes it receives. In lay-man’s terms it means it will be spending more money than it is making. I think that you should pay into your own private retirement account for you to reap the benefits in the future. Not for you to pay into a cluster of workers money for current elders to benefit from. You need to take care of your own future and not rely on other people’s responsibility. “…people began to think retirement funding as a right…and so…started saving less” (Klay & Steen). That being said, people of a certain age should be “grandfathered” into this meaning, people of the age of say 40, still get the normal social security retirement money but anyone younger must start abiding this new reform. If you get married, keep paying into your own unless your spouse is not working. If that is the case then pay the same amount BUT put half into your own and half into your spouses. If the other spouse is working however, they should pay into their own account and you into your own.
22. Kennith Davis, "The Birth of Social Security," in Visions of America's Past, ed. William Bryans et al. (Plymouth: Hayden-McNeil Publishing, 2011), 327.
Social security, since instituted in 1935, has kept many elderly people from running below the poverty line (Hosansky). In 2015, the Social Security Administration predicted that the funds would be depleted by 2034 (Max). This poses a serious threat to the living situation of future generations when they retire. Our elderly, by today’s standards, enjoy a comfortable lifestyle. They are able to retire and still make over one thousand dollars a month. Some people also have private pensions which allow them to live even more comfortably. But with social security funds running out, we must ask the inevitable question. Is it worth having social security anymore? Social security should be kept. One must never fully rely on social security. In addition
It is an essential part to Americans all over the United States and this program was made for a reason and should still continue. If the social security benefits were cut, Americans would not longer survive financially. Social Security has been in effect for 75 years now, and has helped many retired workers and people with disabilities. It has been successful until recently when strategies predicted that the rate of payee is less than the rate of beneficiaries. Although, money will not come in fast enough to keep the program going, the solution is not to cut benefits or to shut it down. Social Security is beneficial for all, and some could not live without it. It’s basically a reward for the retired workers and the Americans that have worked hard and long for. The age to retire is 62, and that’s the earliest age. Although, you have no choice but to retire, you don’t necessarily have to retire at that exact age. Americans could work longer and collect more benefits. There are some strategies that has major economic potential. If the elderly worked longer, their earnings would gather and generate the payroll taxes. This would also help the social security’s troubled finances. Everyone looks forward to retiring from their job, but working longer has its rewards. Surveys showed that working longer would give them more time to learn about retirement and social security and will keep them on track into retiring. Older Americans look forward to starting a new job in their late ages and those who work longer are more likely to be happy and healthier than people who have already
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 deductions, then get money back after you retire. Nonetheless, Social Security is a complex and intricate communal program. By design, Social Security involves massive subsidies from the next generation of retirees to the present, from single workers to married couples. Now that the gigantic post World War II baby boomers generation approaches retirement age, there is concern about the consequences it will have on Social Security. There are basically three options, we can do nothing and allow Social Security to run it’s course, revise Social Security, or consider privatization of the system.
Lots of working people are scared when comes planning for their retirement day, as well as there are some of them are confident to face theirs restful years. This people who fear with their retired age are the person whose are lack of knowledge about financial matters so they will ignore their planning for retirement as long as they can. The effect is, they will try to continue to work as long as they can work. Recently, the Ministry of Human Resource’s Malaysia, increase the retirement age to 60 years old for government sectors. As Hunt (2009) state that Malaysian confident for their retirement have decrease rapidly in some way. According to Lai Cheng Tung & Jean Dennis Comeau (2012) the people who agree with the new retirement age as they claim that they required more retirement savings, increasing retirement age will increase the life expectancy, and this provide retention of talent or improving skill proficiency especially in expert job that need longer years of experience to master it. To support more agreeableness in increasing retirement age, based from Life Insurance Association of Malaysia (LIAM), 5% and less than that percent are prepared completely for their retirement (Habib, 2007). All of the statement showed that Malaysian are still good enough to continue working even most of them are lately around 60’s as a period for preparing themselves before retired.