Social Security Problems:
In the United States, there are plenty of problems with the Social Security system. Research shows that the funds for the elderly and disabled might run out by 2034. This will cause tremendous issues for retired people. Due to the funds running out, the issue of Social Security might become nonexistent. The amount that covers about 40-70% of adults’ expenditure today, might not even cover 20% later. This means that retired life for millions of Americans is going to face very serious issues. There is not one, but four major problems lying in the Social Security issue today. These problems are mentioned in this article.
Disproportionate Work to Retirement Ratio
Perhaps the most prominent problem of them all is the disproportionate work to retirement ratio. The study predicts, that before 2030, around 70 million people might retire. This means that the number of people that need Social Security benefits becomes higher. On the contrary, the number of active workers isn’t enough to cover these 70 million people. This means that the tax they pay won’t be able to cover all the expenses.
Life Expectancy
Another very important factor to consider is the increase in life expectancy. It is one of the major problems lying in the Social Security issue today. In modern times, life expectancy is higher. This is might be because of an increase in technology and accessibility to medicinal services. This increase in the people’s average age makes them dependent on Social Security for longer. This means that there are already fewer funds and longer dependency, which can cause serious issues. These people depend on Social Security for the time that they are alive. This means more money is needed per person, which can cause the funds to dry out faster. This will make the retired lives for Americans very difficult.
Fall in the Total Economy
Recently, there has been a fall in the total economy. This has resulted in low taxes, especially income taxes. This reduction in taxes acts as a curse for the people that depend on these beneficial programs. These low taxes result in lesser funds for Social Security. This low funding can cause the retired to face serious issues. With low interests and taxes, there is not enough money being sent into the Social Security scheme. This will result in the funds to dry out sooner.
Also, the coming generations face the risk of their retired lives. Future generations might have to fend for themselves during old age. This conclusion is because Congress doesn’t seem keen on investing further. Congress has remained surprisingly quiet on this issue. They don’t seem interested in addressing the issue at all. This policy of ‘brushing it under the rug’ won’t do any good. This will cause the retired citizens to suffer terribly.
Social Security is the lifeline of millions of retired Americans, and without this, they will suffer. This lack of funding can be an issue of serious distress. Not only present, but future generations will seemingly have to fend for themselves. This will result in millions of retired Americans being dissatisfied and under immense pressure. This policy needs to be fixed soon, and the future of the policy also needs to be decided. Not addressing the issue isn’t going to do any justice to the problems. The problems might increase and will also impact the economy. Millions of retired and poor Americans will cause the overall economy of the country to crash.
