Social security is a federal program that provides monetary benefits to people after they retire. This program also provides benefits to those who are unemployed or disabled. The funding for this program is provided by the taxpayers. Almost every person who receives a paycheck will consistently have their own money taken from them and put towards this government program. Since social security is a government program and a person pays for it every paycheck, in most cases they will qualify for social security benefits once they reach the age of retirement. While social security is a great program and provides millions of people who can no longer work with money to help them survive, there is one small problem- “current predictions indicate that
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In both options, a small percentage of money will be taken from the workers’ paycheck and will be put into an account. While social security may run out, a private pension will not. This means that the worker will be guaranteed access to their money that has been put in a fund specifically for them. The main difference between the two is that there is more security in choosing a private pension plan rather than social security. In a private pension plan, a person knows how much money they will have when they retire, and can add more money if they would …show more content…
The “baby boomers” are the generation born from 1946 through 1964, this is the largest generation in American history. With all of them reaching the age of 62 and retiring very closely together, it is draining the Social Security fund. “As Boomers begin to retire, the huge group of people putting money into the system will begin taking it out of the system, which then will be funded by a generation of workers—the so-called Gen X—whose numbers are some 15 million fewer. The surplus of money paid into the system by Boomers will allow it to run into the late 2030s, even though it will begin paying out more than it takes in by 2017.” (Reuteman, 2010) As just stated, the current working generation has much fewer people and workers than the previous ones. This would not be a problem if it weren’t for the previous generation collecting large sums of money from the Social Security fund.
Many people who support Social Security claim that it will not run out and it provides you with a living wage. This is simply not true. While social security itself may not actually run out, the benefits offered will definitely decrease tremendously by the time this generation reaches retirement. Social Security checks are funded by the current people in the workforce. If there is less people working, there is less money to give. If Social
In both options, a small percentage of money will be taken from the workers’ paycheck and will be put into an account. While social security may run out, a private pension will not. This means that the worker will be guaranteed access to their money that has been put in a fund specifically for them. The main difference between the two is that there is more security in choosing a private pension plan rather than social security. In a private pension plan, a person knows how much money they will have when they retire, and can add more money if they would …show more content…
The “baby boomers” are the generation born from 1946 through 1964, this is the largest generation in American history. With all of them reaching the age of 62 and retiring very closely together, it is draining the Social Security fund. “As Boomers begin to retire, the huge group of people putting money into the system will begin taking it out of the system, which then will be funded by a generation of workers—the so-called Gen X—whose numbers are some 15 million fewer. The surplus of money paid into the system by Boomers will allow it to run into the late 2030s, even though it will begin paying out more than it takes in by 2017.” (Reuteman, 2010) As just stated, the current working generation has much fewer people and workers than the previous ones. This would not be a problem if it weren’t for the previous generation collecting large sums of money from the Social Security fund.
Many people who support Social Security claim that it will not run out and it provides you with a living wage. This is simply not true. While social security itself may not actually run out, the benefits offered will definitely decrease tremendously by the time this generation reaches retirement. Social Security checks are funded by the current people in the workforce. If there is less people working, there is less money to give. If Social