Social Security Essay, Research Paper

Will Social Security be here in the future

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.

Everyone is worried about the future of the social security system. They wonder how long it can last after the year 2030. There are many ways people are suggesting to deal with the problem. Some suggest to raise taxes on social security “In order to continue paying full benefits in 2032 and for about 40 therefore, the law would have to be changed to increase social security taxes by almost one-half, from the current 12.4 percent to about 18.0 percent”(www.ssab). This would not effect the people on social security but it would effect the labor forces. This would effect the younger workers because as the years go on the years go on taxes would just keep raising to cover social security. Another plan comes from the president. The president’s “proposal was to give millions of poor and middle-class Americans as much as $300 a year to open their own retirement account”(Washingtonpost). The goal of this project is for Americans to start there own retirement accounts and not have to depend on the social security system. In my opinion the presidents proposal is better because if you raise taxes it is like the younger generation I getting ripped off. Why should they have to pay all of this money into something that they don’t even know if it will be around when they are ready to retire. There was problems with it before so who is to say there will to be in the future. You can’t keep raising taxes forever there has to be a limit. I think that the best thing for social security is to get rid of it all together.

Bibliography

1. http://washingtonpost.com/wp- srv/politics/special/security/stories/accounts041599/htm

2. http://www.policy.com/issuewk/1999/0306_60Intro60.html

3. http://www.ssab.gov/rep5vii.html