Social Security - 2346 Words

Social Security at 80: Time to Retire? or Revise In 2015, America’s Social Security System turns 80 years old. The original act was a landmark bill, as it was the establishment of America’s safety net. The promise of the act was to ensure that America’s retirees would have some protection from poverty. Since the Social Security Act of 1935 was passed, the social safety net has been expanded to cover additional groups and classes of people. The most important additional programs established being MediCare and MedicAid. After years of running a surplus, Social Security has reached an inflection point. At the current rate of drawdown, the trust fund will run dry, and Social Security will begin to operate as a pay-as-you-go program,†¦show more content†¦This act created Medicare Part D which was the introduction of prescription drug coverage. Since 1965, prescription drugs have become more common but were excluded from the original 1965 act. The law was meant to address the increa sing dependency of elderly on prescription drugs to manage chronic illnesses. Unlike the Veteran’s Affairs prescription drug benefit plan, the MMA does not allow the federal government to negotiate drugs prices. This has become a contentious point because the same drug can cost the VA 50% than the same drug under Medicare. Demographic Issues Affecting Social Security, Medicare and Medicaid The overriding issue facing Social Security, Medicare and Medicaid is the changing of America’s demographic makeup. Shortly after the close of the Second World War, the U.S. saw a dramatic rise in fertility, called the Baby Boom generation. The sharp rise and following fall of U.S. fertility produced what is often called a demographic dividend. The demographic dividend provided by these workers coincided with an era of unparalleled economic growth for the United States and the rest of the world. But the demographic dividend provided by the Baby Boomers is coming to an end. Beginning in 2011, the Baby Boomers began to retire and the aged dependency ratio is set to markedly increase. The Social Security Administration estimate that the U.S. aged dependency ratio will rise to 35% in 2030 from the 2010Show MoreRelatedSocial Security999 Words   |  4 PagesSocial Security History, Current Structure and Calculatio n of Benefits The Social Security Act was implemented in 1935, after the stock market crash had wiped out the savings of millions of Americans, the nation reached out to their president to guarantee the elderly a decent income. The original Act provides retirement benefits payable to a person 65 years and older who were no longer working. There were very few people that had access to pension from their employers and through government pensionRead MoreSocial Security1185 Words   |  5 Pages) ADM653: SOCIAL SECURITY AND EMPLOYEE BENEFITS ADMINISTRATION TOPIC: DEVELOPMENT OF SOCIAL SECURITY IN UNITED STATES PREPARED BY: AFIQAH BINTI MAD KASSIM 2013455736 ALIA ATIQQAH BINTI ADENAN 2013 FIQRIN HANIS BINTI ROSLI 2013488894 INTAN SURAIYAH BINTI RAMAT 2013460818 NUR AMILY BINTI ZAINUDDIN 2013439594 GROUP: S3BA5G (SEPT 2015) PREPARED FOR: SIR SUHAIMI BIN ABD SAMAD SUBMISSION DATE: 13 OCTOBER 2015 1.0 Introduction United States Social Security AdministrationRead MoreSocial Security And Economic Security1311 Words   |  6 Pages In 2033 a retiree with the average Social Security benefits of $1,294 will only receive 77% of this number or $996. This average retiree pays the average monthly costs for a single adult in Grand Rapids, Michigan of $1,323. This shows Social Security benefits today are sinking below the amount necessary to live. In the case the benefits are cut further, living on benefits will be impossible. This stays true to the 20% of retirees who rely on Social Security for all of their income. To make a trulyRead MoreSocial Security And Economic Security1582 Words   |  7 PagesIn 18 years, Social Security benefits could drop so that millions will not have the money to survive. On the other hand, it could not exist entirely. Social Security funds are sinking due to its history, its inability to obtain funds, and the retirement of the Baby Boomer generation. To make a truly accurate evaluation of Social Security one must look at the past, present, and future of the program which is depicted in the following paragraphs through the program’s history, its costs, and finallyRead MoreSocial Security : A Social Problem3610 Words   |  15 PagesThe social security deficit is one that consumes the economy in the greatest way possible, whether man is aware of it or not. Social Security is an insurance plan the working class earns their beneficial coverage due to their work hours and tax paying on their earnings. The program is for the disabled and for those who can longer work due to health issues, or because of the retirement age that is required to have reached and some have met. To solve the social security dilemma some of the actionsRead MoreEssay on Social Security1184 Words   |  5 Pages Social Security nbsp;nbsp;nbsp;nbsp;nbsp;Social Security is a public program designed to provide income and services to individuals in the event of retirement, sickness, disability, death, or unemployment. In the United States, the word social security refers to the programs established in 1935 under the Social Security Act. Societies throughout history have devised ways to support people who cannot support themselves. In 1937 the government began issuing Social Security identification cardsRead MoreEssay On Social Security1655 Words   |  7 PagesThat’s why America created a system called social security in 1935, this system is to help those who are older and have disabilities. (see staff.) Social security has three main part: first is the objective and comprehensive introduction to the American social security system; the second is the information authority, novel, the policies and data are from the US government and the legislature; third is the academic and practical combination of the US social security system Of the policy practice at theRead MoreThe Social Security System1442 Words   |  6 Pageshave faced the uncertainties brought on by unemployment, illness, disability, death and old age. In the realm of economics, these inevitable facets of life are said to be threats to one s economic security†- (www. ssa.gov). The 1935 Social Security Act was a giant step towards creating an economic security for the nation. However, as a person who has yet to be in the work force for 10 years I have already begun to realize that my comfort in retirement cannot rely on government funding, there are thoseRead MoreThe Benefits of Social Security1031 Words   |  4 PagesSocial security is any government system that provides monetary assistance to people with an inadequate or no income. The United States government program was established in 1935. Social security is important in the U.S. because it lifts 20 million people out of poverty. Social security has changed drastically in the past few years of our society. Today, 37 million people get social security benefits of more than $15 billion a month. One way of getting a social security is to gain employment. TheRead MoreEssay on Social Security782 Words   |  4 PagesSocial Security The purpose of this paper is to analyze social security so as to show the reader what makes it beneficial to us today. . Throughout my life the words social and security have meant little more to me than the representation of a small blue card in my wallet, a consistent and increasingly significant deduction of funds from my weekly pay-check, and a vague academically-instilled recollection of the potential for long-term future benefit. In fact, it was not until I researched