By: Alex Servais
Every once in a while Social
Security is brought up on the news, and it is usually pertaining to when then
government will run out of money to fund Social Security. Eventually the funds
for Social security will run out, it’s just a matter of when. But the even
bigger question is, when we retire, will the Social Security that we pay for
from our paychecks, benefit us in the future?
Social Security is a very common
topic at government meetings, and it was recently brought up at the meeting of
the Society of Actuaries in San Diego. At this meeting they talk about the
funding for many items, Social Security being the main one. Government analysts
have figured out that the funding for social security is slowly depleting. Why?
Because of the unemployment rate.
The unemployment has been at its
highest in the last 7 or 8 years. That obviously means that less people are
working, but how does that affect Social Security? Well, if you have a job, I
am sure you have wondered at one point why your paycheck was smaller than you
initially thought it would be. That’s because of taxes. The taxes that are
taken out of your paycheck help fund a number of different things, one of them
being Social Security.
In recent years, people who receive
Social Security checks on a weekly basis have noticed that they are becoming
smaller and smaller as time goes on. This is the result of more and more people
becoming unemployed, which means that there is less money that the government
can take from people, and the funds are slowly becoming less and less.
The standards of living for people
have recently increased too. People have to spend more of their income on their
living expenses. These increases in expenses are more than likely the result of
inflation. Social Security checks are only so much money, and with the
standards of living and the costs of living on the rise, the Social Security
checks are not enough to cover those costs.
Social Security was supposed to be a
permanent solution to help retired people, widowed, and injured people have a
source of income. But in the last few years, analysts have found out that
Social Security will not last forever as it was intended to. Social Security
checks will become so insignificant, that the government will just stop giving
them out indefinitely.
By about the year 2033, we will only
be in our mid to late 30’s, but there will be no more Social Security. The
funding for it will stop. The money taken from our paychecks will either stop
being taken out or it will be put into a new form of social security. But there
is no need to worry because there will be some sort of income for those
retired, widowed, or injured people.
Video
Link:
Works Cited:
Quora.
"How Accurate Is The Concern That Social Security Money Will One Day Run
Out?"
Forbes. Forbes Magazine, 28
Aug. 2013. Web. 05 Nov. 2013.
"Why
Social Security Is Running out of Money." YouTube. YouTube, 18 Mar.
2013. Web. 05
Nov.
2013.
"Will
Social Security Run out of Money?" CBSNews. CBS Interactive, n.d.
Web. 05 Nov. 2013.
Alex,
ReplyDeleteYour post painted a very bleak picture of Social Security until the very last sentence. In the last sentence you made an abrupt turn-about and said that there's no need to worry, that there will be some new form of income for those retired, etc. My question to you is, what new form of income do you see in the future and where do you predict it will come (be taken) from?
Thank you!
Mr. Batterman
Mr. Batterman made a good point, the whole article was how Social Security would run out by 2033, but yet we need not to worry, because there will be money from somewhere. I also had a few questions. Where are you getting the year 2033? It seems like you pulled it out of nowhere. I think by that time the government would have realized just how bleak to future for Social Security is and would be at least working on a solution.
ReplyDeleteMaybe nobody knows where it will come from or what it will be yet because they are still surprised that social security will run out and they thought it was such a good idea that there would be nothing that could come in the way of it. If they aren't able to come up with a new social security then that's when the problems can happen for the retired, and if the retired aren't getting money then they'll have to go back to work and is there really such a thing a retirement?
ReplyDeleteI knew that our country's Social Security fund was depleting, but I didn't realize that it was from the unemployment rate. But that makes sense because if there are more and more people not contributing to the fund, where is all money going to come from to support our retired class? Some solutions I though of were to raise the current tax that goes towards the Social Security fund, but it is probable that many people will not like this increased tax. Another idea is to cut from the unemployment checks that the unemployed receive every month, because if they are the source of the problem, then they can be the solution.
ReplyDeleteThis is a very good topic to discuss, I feel we need to pay more attention to this topic and try to figure out a back-up plan in case we do run out of Social Security. It's not so fair to everyone else who has been putting the money into Social Security and we aren't going to see any of it ourselves once we retire. It's crazy to think about how this will truly effect us when we retire.
ReplyDeleteI really enjoyed your tie in between the lack of social security and unemployment. On a personal level, I always see that $20 or so get cut from my paycheck and wonder if I'll ever see it again. From your post it appears not. It sounds like there may be some benefits from cutting social security from the standpoint that middle and lower class families will have that extra money in their pocket that can be put back into the economy. Unfortunately, we're then left with the problem of trying to support those dependent on social security as their income.
ReplyDeleteIt's kind of scary to think that in only a short period of time, a huge government system will become depleted. Like many people said above, I was also unaware that is was a result of high unemployment rates, but I guess that makes sense seeing as the money that funds Social Security comes from people's paychecks. A little over a year ago, when I got my first job and received my first paycheck, I felt that sense of annoyance when my check was smaller than it was supposed to be. I want that extra $15-$30, and to think that even though it is going towards Social Security - which may not be there in 30 years - is kind of a scary thought.
ReplyDeleteI still find it amazing that are government can be 15 trillion dollars in dept but yet still be given close to 2 trillion to welfare. You would think that it would be more common sense to give this money into the Social Security that rewards people who have worked and paid there taxes for many years. It is kind of sad that are government can give so much to the poor but not hard working citizens. It is really sad the more you think of it.
ReplyDeleteIt's shocking to think that the money I am working for and giving to Social Security may not be there when I need it, even though I worked for it. Along with many others I was also surprised to see that the main cause for the lack of Social Security is the high unemployment rate. But it makes sense, in order for Social Security to make money there has to be people working.
ReplyDeleteIt’s pretty scary to realize that by the time we may need the benefits of Social Security, we may not receive them. I knew that the unemployment rates were high, but I was unaware of the great affects it had on Social Security. It’s weird that despite the great size of our government and this system, it still has a possibility of failing. I also find it pretty strange that even though we may not be able to benefit from Social Security in the future, that money is still being taken away from our pay checks.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAround the year of 2033 is when some of us will be getting to that age where we need the benefits of social security, As you said there will be no more social security for us in our 30's and its a scary thought. When we work, we pay taxes into social security and that money is used to benefit retired and disabled people but when we get to that point we wont have anything, because of how high our unemployment rate is, and that is taking such a toll on Social Security funds.
ReplyDeleteYour thoughts are very valid ones. As the U.S. federal debt grows larger and larger, the money will have to come out of something if we are to prevent utter governmental and monetary collapse. The question is, how will we make the shift off of dependence on social security funds. Any politician who brings it up risks lynching, as social security is something that is universal - and people don't want to give up their free stuff.
ReplyDeleteIt's strange to think that the money the current workforce rightfully earns is being used to benefit those who no longer work, and now this workforce may not be able to receive those same benefits. It's scary because I know from personal finance class that many elders are not just enjoying the benefits but are dependent on social security to buy them even the most basic of living supplies. It makes me wonder what other programs the government will implement, if any, to help those who won't be receiving social security in the future.
ReplyDelete