Some believe Social Security will die out in the future. As stated, “By the time people who are students today are ready to retire, Social Security will not be available to them. This is because the baby-boomers retirement in such great numbers will bankrupt the system”. Is there evidence that proves this statement to be true? This overall statement raises a lot of questions. Statement one, “By the time people who are students today are ready to retire, Social Security will not be available to them”, leaves you with immediate questions such as: Why won’t it be available to students when they retire? What is the relationship of baby boomers and Social Security? The statement is stated like a fact, is there real evidence to support it? When
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To find out the accuracy of the statements, research needed to be done. A brief summary of the issue (after research) is as follows. After world war two, there was a big baby boom. After world war two and the hard times of the depression ending, people were ready to move on. A baby boom occurred with there being over 78 million babies between the years 1946-1964. As the boomers get old enough to work, they began putting more money in the system then taking it out. What does this mean when all of the boomers are ready to retire? All of them will need to take money out at around the same time. Luckily there was a surplus put into the system by the boomers, but how long will that surplus last? It is predicted that the surplus will last till the late 2030s. Michael Astrue, a commissioner of the Social Security Administration, states we will not be in crisis and predicts we have plenty of time to resolve the issue, “2037 is a long way off and there is no reason to panic, but this is a serious issue we need to resolve. Younger people tend to overreact”. After reading Michael Astrue’s statement, it seems it is an issue. Luckily, there is time to find a solution, but what might that be?
Another report, from the Social Security and Medicare Board of Trustees, discusses how by 2017, Social Security is expected to start paying out more then it takes-in in payroll taxes, “T here is currently a large surplus, but it will be drained by the year 2037. At that point, Social Security will only be able to pay out 75 percent of its benefits”. This lines up with what Michael Astrue stated. The baby-boom is definitely giving Social Security a run for its money, and can potentially be a big problem. Luckily, we have time to start fixing
To find out the accuracy of the statements, research needed to be done. A brief summary of the issue (after research) is as follows. After world war two, there was a big baby boom. After world war two and the hard times of the depression ending, people were ready to move on. A baby boom occurred with there being over 78 million babies between the years 1946-1964. As the boomers get old enough to work, they began putting more money in the system then taking it out. What does this mean when all of the boomers are ready to retire? All of them will need to take money out at around the same time. Luckily there was a surplus put into the system by the boomers, but how long will that surplus last? It is predicted that the surplus will last till the late 2030s. Michael Astrue, a commissioner of the Social Security Administration, states we will not be in crisis and predicts we have plenty of time to resolve the issue, “2037 is a long way off and there is no reason to panic, but this is a serious issue we need to resolve. Younger people tend to overreact”. After reading Michael Astrue’s statement, it seems it is an issue. Luckily, there is time to find a solution, but what might that be?
Another report, from the Social Security and Medicare Board of Trustees, discusses how by 2017, Social Security is expected to start paying out more then it takes-in in payroll taxes, “T here is currently a large surplus, but it will be drained by the year 2037. At that point, Social Security will only be able to pay out 75 percent of its benefits”. This lines up with what Michael Astrue stated. The baby-boom is definitely giving Social Security a run for its money, and can potentially be a big problem. Luckily, we have time to start fixing