The Future of Social Security

The Future of Social Security

The social security administration is faced with a number of challenges that could possibly interfere with its ability to pay members benefits adequately. According to Murray (2015), the number of retirees is growing significantly with time hence the institution may not be able to cater for all the benefits. The issue can be tackled by raising the retirement age from 66 years to 68 years by the year 2033. It is estimated that the option will remove around 15 percent of the deficit. Increasing the retirement age means that individuals will keep working and contributing to the system for more years hence accumulate more money into the pool.

The system of social security in the United States compares with other developed countries in various ways. The nations demand that individuals contribute as they work for their retirement benefits and the surplus is kept for future use. A pay as you go system is imposed in these countries and the benefits are obtained through a payroll system (Murray, 2015). The United States depends solely on this source unlike countries like japan and Germany which impose gener-tax to add onto social security. Healthcare costs, the major concern in old age are more favorable in other developed countries than in the United States. The better costs are useful because retirees do not have to use their retirement benefits on health care. Social security in other developed countries is, therefore, more reliable and sustainable in other countries than in the United States.

The social security in the United States needs restructuring and it has been suggested that the retirement benefits should be cut. Reducing the retirement benefits for the retirees is not the right path to take due to the repercussions associated with it. The elderly have a lot of financial needs especially with deteriorating health which demands more spending(Murray, 2015). It is during this crucial age of the lives of the retirees that they need more money thus the benefits should not be cut. The government should adopt a more viable option for the social security challenge.

References

Murray, C. (2015). Losing ground: American social policy, 1950-1980. Basic books.

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