Social security was designed to replace less than half of someone’s preretirement income. The 70 percent left over should be based on that person’s savings for retirement. The retirement age is sixty-seven, and there are benefits for retiring at the age of seventy. On the other hand, early retirement, which is at the age of sixty-two is an option as well. If someone were to have an early retirement, his or her monthly benefits would be reduced. Having a steady income throughout a working career will greater the chances of receiving surpassing benefits. Social security payments are usually done electronically through direct deposit.
When someone starts working they are automatically required to contribute to the social security pool. Once someone decides to retire, they will be able to collect their benefits and they will no longer have to contribute to the benefits of others. In order to
ECONOMICAL ISSUES WITH SOCIAL SECURITY 3
receive benefits, someone will have to earn forty credits, which is about ten years of work. Regardl...
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...yone contributing to the social security pot, why not have a personal social security savings. This way people would be more likely to want to contribute to the program knowing that the money inserted into the account will be the same amount of money received when it is needed. With this method, it would be fair for the people who know how to save money, and plan for the future. Even if people did not save for their retirement, they would still benefit from social security because of the laws that are currently in place. Their mindset would not be based off of the pressure of saving up money for the future since they can rely on the income they could make with social security. Reasons like this proves that there are some loop holes when it comes to social security, and there needs to be a way for social security to go back to what it was originally intended to be.
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