The Future Financial Status of the Social Security Program

Stephen C. Goss has extensively written about the future financial status of the social security program for the Americans and for the whole world at large. He patently articulates that changes enacted in 1983 on Social Security are expected to bring dynamic revolution, such that the benefits and other compensations would be paid in full and on a timely basis until 2037. In 2037, trust fund reserves are expected to be virtually exhausted. After the reserves are used, continuing taxes will be vastly relied upon to pay 76% of the benefits. There will be need and the necessity for the Congress to deliberate on changes concerning the program. It is estimated that reduction of benefits by 13% or a sudden increase in payroll tax to 14.4% from 12.4% or a combination of these two strategies will lead to full payment of scheduled benefits for the next 75 years. In the article, Stephen Goss explicitly analyzes the financial state of the Social Security program. He fundamentally analyzes the aspects of solvency and sustainability. It also evaluates the effect of the social program on the federal budget. It is apparent that social benefits that Americans deserve will continue in the future with certain adjustments to be implemented by the congress and by the legislative bodies.

Many professional individuals look at the social security program and wonder if they will indeed get their benefits. This question may be answered by analyzing solvency of the Social Security trust funds. Solvency may be referred to as the position or capability of trust funds to cater for the Trust funds i.e. (OASI) Old-Age and Survivors Insurance benefits and for (DI) Disability Insurance benefits, are special. Together with the Hospital Insurance (HI) Trust Fund...

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...r all their employees to contribute money towards the kitty. The mandatory payments will later prove useful and significant to them in their old age. Any new employees must be provided with this information on the importance and the benefits of the scheme. They must also acknowledge the fact that it will be a statutory deduction in their monthly pay schedule. This essentially prepares the workers psychologically to be ready for monthly deductions in their pay and ensure good interrelation between employers and workers.

Works Cited

Clements, B. J. (2014). Equitable and sustainable pensions: challenges and experience. Washington, D.C.: International Monetary Fund.

The Future Financial Status of the Social Security Program. (n.d.). The Future Financial Status of the Social Security Program. Retrieved May 14, 2014, from http://www.ssa.gov/policy/docs/ssb/v70n3.