Term Paper on "Social Security How the Social Security Insurance"
Term Paper 4 pages (1075 words) Sources: 1+
[EXCERPT] . . . .
Social SecurityHow the Social Security Insurance Works
The Social Security is an organization is that is commonly known to anyone especially to those who are in the labor force. But how the Social Security works is not known to many. The Social Security has different programs such as the Retirement, Survivors, and Disability which provide the members or their family relatives, where applicable, lifetime monthly benefits should the members reach or qualify in what the programs state as beneficial period. For instance, in the retirement program, a Social Security member will start to receive his lifetime monthly benefits upon he reached a certain age. To apply for any Social Security program, there are also qualifications that the applicants must meet.
Social Security sustains from explicit taxes that the workers and the employers pay. Both the worker and employer each pay half of the tax. In the case of the worker, such taxes are added to the other income taxes that he pays. The explicit taxes are the sources of the Social Security to finance the Retirement, Survivor, and Disability Programs.
The Social Security earns money through Trust Funds. Following is a simple explanation on this, as extracted from an online article.
What happens to the extra money collected by the Social Security system? In effect, it is loaned to the Treasury, which is borrowing the money just as it borrows money when it sells Treasury securities to the public. In this sense, the surplus money collected by Social Security helps pay for the rest of the government.
In return for the surplus tax revenues it furnis
download full paper ⤓
Problems With Social Security
The Social Security works in a simple structure as this: the current generation pays for the benefits of the current retirees, disabled, and survivors. With this system, the National Center for Policy Analysis sees the following as problems that can cause the bankruptcy of the organization.
Life expectancy is increasing faster than expected -- in 1940, a 65-year-old man could expect to live another 12 years, today it's 15 years, and by 2040 it will be 17 years.
The fertility rate is falling faster than expected -- from 3.6 children for a typical woman of child-bearing age in 1960 to just two today and a projected 1.9 by 2020 -- and is already less than the rate of 2.1 needed just to replace the existing population.
The elderly portion of the population is expected to rise from 12% today to 20% by 2050 -- increasing the number of retirees from 34 million to 80 million.
The smaller working-age population and larger elderly population means that where there were more than five workers for each retiree in 1960 and 3.3 workers per retiree today, by 2030 there will be just two workers to pay the taxes for the benefits of each retiree.
Proposed Changes
Several solutions are proposed to minimize or eliminate the problems in Social Security. Although there are no simple solutions in the issues and problems being faced by the Social Security, the proposed solutions are under extensive study where debates and arguments are presented. The American Academy… READ MORE
Quoted Instructions for "Social Security How the Social Security Insurance" Assignment:
“how does social security insurance system work?
what are the problems with social security
what are the proposed changes?
will these changes work?
what is your opinion for possible solutions?
How to Reference "Social Security How the Social Security Insurance" Term Paper in a Bibliography
“Social Security How the Social Security Insurance.” A1-TermPaper.com, 2005, https://www.a1-termpaper.com/topics/essay/social-security/6608739. Accessed 28 Sep 2024.
Related Term Papers:
Security Explain the Endurance of NATO Term Paper
security explain the endurance of NATO since the end of the Cold War?
NATO continuous survival after the end of the Cold War still remains a mystery for the academic… read more
Term Paper 8 pages (3199 words) Sources: 35 Topic: World History
Comparing and Contrasting Our Social Security System With That of Canada Research Paper
Social Security system is designed to provide benefits to the individual from: the moment the reach the age of 65 or they become disabled. The way that it works is… read more
Research Paper 4 pages (1232 words) Sources: 5 Topic: Healthcare / Health / Obamacare
Social Security the First Recorded Applicant Research Proposal
Social Security
The first recorded applicant for a lump sum payment from Social Security was Ernest Ackerman, who retired only one day after the Social Security program began. For his… read more
Research Proposal 5 pages (1543 words) Sources: 3 Style: MLA Topic: Economics / Finance / Banking
Social Need and Public Services Term Paper
Social Need & Public Services
Social Citizenship and Welfare
The concepts of social citizenship and welfare are intertwined in terms of their views on basic human needs and the right… read more
Term Paper 7 pages (2277 words) Sources: 7 Style: Harvard Topic: Government / Politics
Security Issues of Online Communities Term Paper
Security Issues of Online Communities
Online communities have emerged in recent years as a result of the rapid growth of the Internet, arousing intrigue in citizens, policy-makers and government officials.… read more
Term Paper 60 pages (15576 words) Sources: 1+ Topic: Computers / IT / Internet
Sat, Sep 28, 2024
If you don't see the paper you need, we will write it for you!
We can write a new, 100% unique paper!