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Summary: Effects Of The Social Security System

921 Words4 Pages

Halie Argumaniz
Mrs. Pinson
English 3
November 3 2014

“Effects of the Social Security System”
The Social Security System is effective in an Americans everyday life. The Social Security System suffers from serious funding problems, promotes stability amongst households in the U.S, and has negative and positive effects on income and stability.

S.S. Suffers from serious Funding Problems
Social Security suffers from serious funding problems in which is hard for the American public to understand for example, the Employee Benefit Research Institute's (EBRI;www.ebri.org) 2005 annual retirement confidence survey indicates that 68% of current workers are skeptical about receiving benefits at least equal to that of today's retirees (Susan B. Anders …show more content…

The options follow the convention of not reducing initial benefits for people who are currently older than 55, and all would directly affect outlays for benefits or federal revenues dedicated to Social Security (cbo.gov) The poor economic outlook for Social Security is not a recent development, nor has it only recently been recognized. A major attempt at improving its fiscal soundness was made in 1983, when Congress increased the payroll tax rate and raised the retirement age to 67, creating an expected surplus through the year 2065. Several factors have affected the revised deficit projections, including the continuous forward shifting of the measurement period, the growth in the disability caseload, and changes in forecasting methodology; these bring the peak in the surplus forward by about 25 years (nysscpa.org). These are only a few examples of some of the serious funding problems that Social Security suffers from. There is a very high chance of some of the statistics coming true if some of the issues do not get resolved. CBO and the Social Security system bud heads a lot when it …show more content…

But the current economic downturn has many people seeing an increasingly uncertain (if not downright break) future for their Social Security benefits (Nolo). $762 billion in Social Security benefits paid out in 2012 supported more than 9 million jobs – full - & part time. Its publication comes amid calls from some quarters for Congress to slow the rate of increases in Social Security benefits. (Bill Hogan). Social Security promotes a steady income to replace wages to retirement, disability, or death. These benefits are helpful and useful it makes the life of an American a tad bit easier. We have so much help from the system and their support. Some people worry about the future outcome of the Social Security system or its “economic downturn” which seems legit hopefully the issues will be resolved before hand. We all put our trust into the hands of the American government and hope they do what is best in which they promise us. There is not much we can do to prevent what happens to the economy the power is not in our hands. The government has discussed two different policy options. One being the government taking your highest amount of money you made in your career for three years and reducing it by 2.5% and another being the highest earnings you made in career in 5 years and reducing it by 4%. These decisions are not final but they

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