The Problem With Social Security Trust Fund - 865 Words

The problem with Social Security trust fund is that at the present time there is more credit in the trust fund than is required for payment of Social Security benefits. â€Å"By 2027 revenue coming into the trust fund will fall below the level of being paid out, and by 2040 the trust fund will be depleted (Quadagno, 2014).†Meaning there will be not enough money from payroll taxes to pay all the benefits that are promised to citizens. This puts everyone who is going to enter retirement in jeopardy. Even though everyone has a right to deserve benefits in retirement I feel more people should take control over their own funds. Some of the reasons that this could have happened is because of the aging of the baby boomers. Another reason is because the population growth slowed since 1960 when women decided to have fewer children. The last reason this could have happened is because people are living longer than the old days. The baby boomer generations are beginning retirement, this c reates a dramatic amount of people who are needed to use the trust fund. â€Å"In 1960 there were five workers for every single retiree. By 2025 that ratio will fall to 2.2 (Quadagno, 2014).† The problem with this is the policy makers do not know how to solve the problem. The two ways that policy makers are trying is to either see if the solution will preserve the basic framework of Social Security as a program or insurance or whether the American welfare state will shift the balance toward more socialShow MoreRelatedThe Social Security System Is The Most Successful Government Social Insurance Program1346 Words   |  6 PagesThe Social Security system is perhaps the most successful government social insurance program in the nation s history; and began with the Social Security Act in 1935. Social Security is a needed federal system that encourages income stability to millions of people across the United States. 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The Social SecurityRead MoreAmericas Social Security: Running on Empty Essay1374 Words   |  6 PagesAmericas Social Security is running out! According to Social Security and Medicare Boards of Trustees â€Å"Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative modifications if disruptive consequences for beneficiaries and taxpayers are to be avoided.† (Social Security Online). Other evidence shows â€Å"After 2022, trust fund assets will be redeemed in amounts that exceed interest earnings until trust fund