Future of Social Security
Student Name
Program Name, Institution
COURSE CODE: Course Title
Instructor Name
Month, Year
Future of Social Security
Younger employees are worried that when they retire, social security would no longer be accessible to them. They are concerned that after years of paying into the system, there may be nothing remaining when they retire. In April 2020, the Social Security Trustees presented their annual report, stating that social security might be bankrupt in 15 years. COVID-19, the ongoing pandemic, is likely reducing resources as well.
Social security is paid from a general fund, and there is a reserve for it in the Treasury Reserve. No one in Congress or the White House desires to be associated with the disappearance of social security payments or the elimination of social security. As a result, social security is unlikely to be phased out altogether. Although young employees would most likely continue receiving social security benefits, their payments will be much lower than those received by current and previous beneficiaries (Kudla, 2020). In regards to Medicare Part A, a Trust Fund is responsible for financing. This is not funded by the overall budget, and the Trust Fund is anticipated to run out about 2024.
The issue of how to finance social security continues to be a problem. The taxation approach of social security is one element that assists and will continue to aid. Approximately 30% of Social Security users pay income tax on their benefits. They have to either pay 50% or 85% of their social security payments in taxes. The income requirements for determining your social security tax treatment are minimal and have been unchanged for over two decades. Maintaining these constants was done on purpose, and it has aided in raising funds to have social security funded (Goss, 2010).
Conclusively, social security will very certainly continue to prevail in the future. Nevertheless, one should anticipate a far lower benefit than what present and previous users have obtained.
References
Goss, S. C. (2010). The future financial status of the social security program. Soc. Sec. Bull., 70, 111.
Kudla, D. (2020). Will There Be Social Security In The Future?. Retrieved 5 June 2021, from https://www.forbes.com/sites/davidkudla/2020/10/09/will-there-be-social-security-in-the-future/