Social security is a program by the federal government that provides an income source for you or your legal dependents that is children, spouse or parents if they qualify for benefits. Also, it can be defined as any of the established measures by legislation to maintain a family or individual income or to provide income when all or some income sources are terminated or disrupted or when hefty expenditures have to be incurred. Social security may offer cash benefits to persons faced with unemployment, sickness, disability, loss of the marital partner, crop failure, and retirement from work or maternity (Livingston, 2008). Benefits of social security may be provided in cash or by court order in compensation for claims.
Social Security is facing a lot of problems currently in U.S. and serious interventions need to be fixed in determination of its future benefit. Social security faces severe financial challenges. The present structure of the program known as pay as you go will be unsuitable as the number of elderly people receiving benefits rises in coming decades. Social security will be only able to pay a fraction of benefits promised to future retirees unless the program is restructured. Additionally, the increasing costs of social security will damage the economy and create pressures to impose a large increase of tax on workers. Federal policymakers have discussed revamping Social Security for years, but they have not acted on reforms (Moon & Conference on Social Accounting for Transfers, 2004).
Many other countries have indicated that privatized retirement systems based on personal accounts can benefit retirees, workers, and the overall economy. America has the chance now to phase out the old-fashioned Social Security system based on government control and taxes and move to a system where individuals possess full charge of their future of finances. The problems the Social Security is facing in the US include;
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