Impacts of the Disappearance of Social Security

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More and more talk recently about the fact that Social Security is on the fast decline has left many people, especially those around the retirement age, wondering what they are going to do for their income when they retire and the system falls through. The fact that this system is disappearing is quickly turning into a major problem because there is a large percentage of the economy that is on the verge of retiring and they are going to need money for that. How, though, will they receive this money if it no longer exists?

Social Security is a system that is set up in the United States that helps people of old age still have a source of income after they retire. It even helps some people who have medical issues and are not able to work. Everyone that does work, however, has to pay a percentage of every paycheck they make towards the Social Security fund to help the people who need it. Then, at a certain age, when people are eligible for it, they start receiving payments from it while other people continue to pay into it. But for some time now, there has begun to be more people taking money out of the fund than putting money in to the fund. It is said that “after 2017, the U.S. Treasury will have to sell more public debt to finance the Social Security deficit” (Pozen 54). While some people continue to refuse that there is actually a problem with Social Security at all, it has been proven that the system is slowly but surely disappearing; in order to fix this growing problem, the head officials in the government are going to need to step up, admit what is going wrong, and start coming up with logical solutions that everybody is going to be happy with to fix it.

A lot of people are questioning why so many think that there is a probl...

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...rmal Retirement Age is set to slowly increase to 67, compared to the age of 65 that it’s set at right now, by the year 2027 (Pozen 58). With the increase in the Normal Retirement Age, it will give people a little bit more time to figure out how to save their money, as well as a couple more years of work to earn money to invest or save. Although a lot of things about the future of Social Security remain uncertain, there is one thing that remains the same: “If we do nothing about Social Security, it is doomed to become insolvent in 2041” (Pozen 62). The fact that some professionals have begun to start proposing a few solutions as to how the country can try to get more money back in to the Social Security system is a wonderful thing, but there is still a lot of work that needs to be done if they younger citizens of America plan to still be able to retire comfortably.

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