Social Security
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Abstract
In the following document, one will find information about the current issues in Social Security. A problem was identified and a solution found for the present layout of the Social Security plan. There are three main topics discussed in the paper: (1) Government background, (2) Focus on specific generations, and (3) Survey Results. One can also find information on the current system along with proposed plans that are currently being reviewed by the senate. As a conclusion, one can view this papers suggested plan of action for resolving the Social Security dilemma at hand.
Table of Contents
Diminishing Social SecurityWhere is it all going?
Social security has been a dying factor in the last couple of years. Due to the declining youth population and the growing number of elderly in the United States, social security is becoming a big issue. The government is trying to deal with this issue, but so far it hasnt been very successful. Even though there are many problems with this issue, the general public has been trying to voice their opinion. We are going to talk about the issues with social security and follow it up with a proposed solution. In the following document one can find information about the government background on social security, focus specific generations, and our recommendations.
Government Background
Social Security consists of three major programs. They are all administered by the Social Security Administration. The programs are as followed:
Retirement
“Social Security retirement program provides a lifetime monthly income for qualified workers once they reach the retirement age. This range varies from ages 65-67. The amount of retirement benefits that a worker receives depends on a percentage of his or her income while working. Workers also have the option of receiving a lower monthly income if they start at age 62.” (Heritage Foundation Reports, 2005)
Survivors
Social Security survivors program provides a monthly lifetime income to the surviving spouse of a deceased worker once he or she reaches retirement age. The survivors program also pays benefits to children under the age of 18 and the surviving spouse caring for them. Unless the child is disabled, its benefits will cease when that last child either reaches the age of 18 or graduates from high school, whichever is later.
Disability
Social Security pays a monthly income to workers who are disabled and to their spouses and children under the age of 18. These specific workers will receive Social Security their whole life. These benefits are dependent on the earning history of the worker. Workers are not automatically qualified for Social Security benefits. “They must work and pay a minimum level of Social Security taxes for at least 40 quarters. The quarters do not need to be consecutive. A person receiving disability benefits needs to have been disabled for at least one year.” (Heritage Foundation Reports, 2005)
Social Security, unlike most other government programs, is funded through specific taxes that are not to be used for any other reason. These taxes are based off a workers income and are withheld from his or her paychecks. For this reason, Social Security taxes are often referred to as payroll taxes. Social Security retirement and survivors program, Social Security disability program, and Medicare are financed through separate payroll taxes. Yet, the three are often grouped together as one line item on workers pay stub. The two Social Security taxes are paid on income up to a specific yearly amount. Medicare taxes are collected on all earned income.
Some people tend to think their Social Security benefits are coming from an actual account in their name. This belief is false for two reasons. First, Social Security has no individual accounts other than bookkeeping reports of individuals annual earnings and payroll taxes. Second, the programs trust funds do not have cash or sellable assets. They only symbolize the amount of Social Security