Social Security Myths
October 11, 2009 | admin | Comments 0
Shelley Godra asked:
Social Security Myths
Written by Shelley Godra
Social Security was created to help finance US citizens after retirement. A portion of every worker’s paycheck assists in funding the Social Security reserve. Currently, these paycheck portions are creating a surplus in the reserve because there are more citizens employed than retired. Some spectators believe that the Social Security fund will not be available to younger US citizens once they decide to retire. Furthermore, some people believe this future crisis will be created by the retirement of the baby-boomers.
These statements are not necessarily true. The Social Security reserve might run out by the time I am ready for retirement; however, the cause cannot entirely be blamed upon the baby-boomers. There are also several steps that can be taken in order for the Social Security reserve to still be used by my generation.
Current statistics show that the Social Security fund, if nothing is changed, will dry up by 2040. There are several reasons for this dilemma, not just the baby-boomers retiring. The government is using the funds from Social Security to pay other federal expenditures and budgets. Thanks to medical advancements, US citizens are living longer and using more of the Social Security funds. People are putting more emphasis on their careers and putting marriage and family on hold. Since there are less children being born now, there will be less workers funding my Social Security once I am ready to retire. The final reason is that more companies are outsourcing their employment positions and less US citizens are offered jobs. Less offered jobs mean a smaller percentage funding the Social Security reserve.
Like stated in the previous paragraph, the Social Security fund will run out if nothing is changed. The first option is to change how Social Security is looked at now and how it will be treated once the baby-boomer generation retires. Government could increase the age eligibility for retiring since people are living longer or could cease payments once a retiree reaches a certain age limit. The percentage from the paychecks currently contributing could be increased, therefore, increasing the funds. The government could be more lenient on its immigration restrictions; more immigrants would help to contribute more to the Social Security reserve.
Changes in the government are not the only way to avoid this Social Security crisis. Proper arrangements are needed for my generation in order to retire without dependency on monthly Social Security payments. Citizens can make alternative retirement plans by investing in 401Ks and IRAs; this way people can take their own risks with their money. Unfortunately, obesity and unhealthy lifestyles might lower the longevity of some in my generation.
In conclusion, there is a future problem concerning Social Security, however, the problem is not fully caused by the baby-boomer generation. Additionally, there are changes that can be made in order to avoid this problem. Personally, I believe that there will be no government changes and the Social Security will indeed run out by 2040. I have taken this burden onto myself by creating an alternative retirement plan. I will be in charge of my retirement.
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Social Security Myths
Written by Shelley Godra
Social Security was created to help finance US citizens after retirement. A portion of every worker’s paycheck assists in funding the Social Security reserve. Currently, these paycheck portions are creating a surplus in the reserve because there are more citizens employed than retired. Some spectators believe that the Social Security fund will not be available to younger US citizens once they decide to retire. Furthermore, some people believe this future crisis will be created by the retirement of the baby-boomers.
These statements are not necessarily true. The Social Security reserve might run out by the time I am ready for retirement; however, the cause cannot entirely be blamed upon the baby-boomers. There are also several steps that can be taken in order for the Social Security reserve to still be used by my generation.
Current statistics show that the Social Security fund, if nothing is changed, will dry up by 2040. There are several reasons for this dilemma, not just the baby-boomers retiring. The government is using the funds from Social Security to pay other federal expenditures and budgets. Thanks to medical advancements, US citizens are living longer and using more of the Social Security funds. People are putting more emphasis on their careers and putting marriage and family on hold. Since there are less children being born now, there will be less workers funding my Social Security once I am ready to retire. The final reason is that more companies are outsourcing their employment positions and less US citizens are offered jobs. Less offered jobs mean a smaller percentage funding the Social Security reserve.
Like stated in the previous paragraph, the Social Security fund will run out if nothing is changed. The first option is to change how Social Security is looked at now and how it will be treated once the baby-boomer generation retires. Government could increase the age eligibility for retiring since people are living longer or could cease payments once a retiree reaches a certain age limit. The percentage from the paychecks currently contributing could be increased, therefore, increasing the funds. The government could be more lenient on its immigration restrictions; more immigrants would help to contribute more to the Social Security reserve.
Changes in the government are not the only way to avoid this Social Security crisis. Proper arrangements are needed for my generation in order to retire without dependency on monthly Social Security payments. Citizens can make alternative retirement plans by investing in 401Ks and IRAs; this way people can take their own risks with their money. Unfortunately, obesity and unhealthy lifestyles might lower the longevity of some in my generation.
In conclusion, there is a future problem concerning Social Security, however, the problem is not fully caused by the baby-boomer generation. Additionally, there are changes that can be made in order to avoid this problem. Personally, I believe that there will be no government changes and the Social Security will indeed run out by 2040. I have taken this burden onto myself by creating an alternative retirement plan. I will be in charge of my retirement.
Create a video blog…instantly.
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