Social Security Outlook
The Economic Benefits and Future
Outlook of Social Security
Social security must change for the future challenges about to be faced. The social security administration has been here for almost 70 years. It is here to provide for retirement, disability, and survivor's insurance. About 7.5 million people get monthly survivor benefits, and more than six million get disability. There are about 45 million people who receive retirement, survivors and disability benefits. For an average wage person with a family, social security survivor benefits are equivalent to a $354,000 life insurance policy or a $233,000 disability insurance policy. Also, a 35-year-old man who earns $40,000 a year with a wife and kid would get $1,900 a month …show more content…
If you make a lot of money, than you will get a larger benefit amount than the workers who do not make as much. But, the benefit formula is set up so that a person making lower wages will get a higher percentage of their pre-retirement earnings. There are nine in 10 American retirees who receive social security. For about 2/3 of the elders today, social security is their major source of income. For 1/3 of our elders, social security is their only income. There is only 11% of American seniors who live in poverty. Without social security there would be about ½ of our elderly living in poverty. People can retire normally at the age of 62, or wait until the full age of 65 and receive full benefits. But, starting this year, the age will gradually start to increase until it reaches 67 for people born in 1960 or later. The reason for this is because people are living longer, healthier lives than before. When the social security program started in 1935, a 65-year-old American had an average life expectancy of 12 ½ more years after retirement. Today the life expectancy is 17 ½ years and rising. Beginning in about 2008 and about 30 years, there will be about 79 million baby boomers retiring. This means there will be twice as many elderly as what there is today. When this happens there is not …show more content…
They should provide a reasonable level of benefits that people actually know they will be paid. Any costs should be funded responsibly. Changes in the Social Security system should also be followed by improvements outside the Social Security system. It is unlikely that a balanced program will make enough benefits to provide income for most Americans. This will not compensate for the fact that most Americans have fell behind in savings that is needed for a secure financial future. How could this happen? We all wonder. First you have to look at the number of taxpayers (workers) and then look at the number of beneficiaries (retirees). When social security began in 1935, there were approximately 16 workers for every beneficiary. This was more than enough to support the pay as you go plan. Over time these numbers reduced to just 3.3 workers per beneficiary. So, by 2030 there will just be 2 workers for every person collecting social
Outlook of Social Security
Social security must change for the future challenges about to be faced. The social security administration has been here for almost 70 years. It is here to provide for retirement, disability, and survivor's insurance. About 7.5 million people get monthly survivor benefits, and more than six million get disability. There are about 45 million people who receive retirement, survivors and disability benefits. For an average wage person with a family, social security survivor benefits are equivalent to a $354,000 life insurance policy or a $233,000 disability insurance policy. Also, a 35-year-old man who earns $40,000 a year with a wife and kid would get $1,900 a month …show more content…
If you make a lot of money, than you will get a larger benefit amount than the workers who do not make as much. But, the benefit formula is set up so that a person making lower wages will get a higher percentage of their pre-retirement earnings. There are nine in 10 American retirees who receive social security. For about 2/3 of the elders today, social security is their major source of income. For 1/3 of our elders, social security is their only income. There is only 11% of American seniors who live in poverty. Without social security there would be about ½ of our elderly living in poverty. People can retire normally at the age of 62, or wait until the full age of 65 and receive full benefits. But, starting this year, the age will gradually start to increase until it reaches 67 for people born in 1960 or later. The reason for this is because people are living longer, healthier lives than before. When the social security program started in 1935, a 65-year-old American had an average life expectancy of 12 ½ more years after retirement. Today the life expectancy is 17 ½ years and rising. Beginning in about 2008 and about 30 years, there will be about 79 million baby boomers retiring. This means there will be twice as many elderly as what there is today. When this happens there is not …show more content…
They should provide a reasonable level of benefits that people actually know they will be paid. Any costs should be funded responsibly. Changes in the Social Security system should also be followed by improvements outside the Social Security system. It is unlikely that a balanced program will make enough benefits to provide income for most Americans. This will not compensate for the fact that most Americans have fell behind in savings that is needed for a secure financial future. How could this happen? We all wonder. First you have to look at the number of taxpayers (workers) and then look at the number of beneficiaries (retirees). When social security began in 1935, there were approximately 16 workers for every beneficiary. This was more than enough to support the pay as you go plan. Over time these numbers reduced to just 3.3 workers per beneficiary. So, by 2030 there will just be 2 workers for every person collecting social