Social Security in the U.S

Introduction

The present Social security program of US is not the best system, but it serves the most important purpose of a nation. The social security of US is becoming more common in the 21st century and it is because of the US recession which has shaken the whole US economy. Here, I am addressing the aspect of survival of social security which is being face in US. There are many solutions which have to be implemented to save the social security issues in the US. The various solutions include the private investment solution, increase in payroll taxes and reducing benefits. People in Us are currently suffering from financial losses plus most of them have almost nil savings for their future life (Handwerker). The US government is focusing on reconstructing and reforming their social survival policies which are mentioned earlier and are going to be explained in the preceding debate. The economic pressures and budget burdens is shrinking the US economy, which has made the government realize to change the policies regarding to social security (Manning, et al.). Ageing policies are potentially wide-ranging, encompassing, for example, the areas of pensions and income maintenance, housing and planning, health care, informal and long-term care, and the explicit field of social inclusion.

Discussion

The Social Security Act was enacted in 1935. It has been amended and expanded on many times. The 1939 amendments, also known as the Federal Insurance Contributions Act (FICA), changed its funding arrangement, established trust funds and add benefits for survivors of deceased workers (Green). In 1940, the system paid its first monthly retirement benefit to the legendary Ida May Fuller. She had contributed a total of $24.75 to the system over 2½ years and collected $22,889 in benefits over the next 35 years.Her story demonstrates three important features about Social Security (Rubb).

In 1950, coverage was extended to the self-employed, farmers, clergy and most state and local government employees (on a voluntary basis) (Lee). This was followed by the Self-Employment Contributions Act (SECA) in 1954, the counterpart to FICA for the self-employed (Fukuda). In 1956, Social Security was extended to active-duty military personnel. Disability benefits were added in 1957 and expanded on in 1960. Early retirement at age 62, with a reduced monthly benefit for life, was added in 1956 for women and 1961 for men. Medicare was added in 1965 (Waine).

The 1983 amendments shaped the Social Security program as it is today. The program began running an annual surplus in 1984, which grew significantly over the years (Nan and Aoxue). The OASDI Trust Funds now have assets of more than $2.5 trillion, at least on paper. The trust fund ratio relates assets at the beginning of the year to the projected expenditures of that year (D'Aprile). The 360 ratio projected for 2010 indicates that the trust funds can pay benefits for 3.6 years from existing reserves (Kingson).

Coverage Today

Roughly 156 million individuals, or 93% of those in paid employment and self-employment, were covered by OASDI in ...