Social Security in the 21st Century :: essays research papers

The 2004 Report of the Social security measures Trustees is in but the control board is still out arguing the findings of the report. Agree or not, the masses have a good idea of the final ruling and they all agree that the menstruation state of the social security system has suffered, for a very long time, from an ongoing deficit problem that will continue to grow unless immediate travel are taken to address the problem. People, on both sides of the fence, argue in support or against the presidents proposed plan to save the Social tribute system. Yet, they all concede and acknowledge that in reality a problem does exist and unless calculated measures are taken, this problem cannot be controlled and will snow bullock block the Social Security System into bankruptcy.The Social Security system was designed in 1935 for a world that is very different from today. In 1935, most women did not work outside the home. Today, about 60% of women work outside the home. In 1935, the average American did not live long enough to collect hideaway benefits. Today, life expectancy is 77 years. (2004 Report of the Social Security Trustees, p. 81) Benefits are expected to rise dramatically over the next few decades. Because benefits are buttoned to wage growth rather than inflation, benefits are growing faster than the rest of the economy. This benefit formula was established in 1977. As a result, the current 20-year grey contributor is promised benefits, which are 40% higher than what will be paid to seniors who retire this year. However, the current system does not have the money to pay these promised benefits. Furthermore, the seclusion of the Baby Boomers will accelerate the problem. In just 2 years, the first of the Baby Boom generation will begin to retire, putting added strain on a system that was not designed to meet the needs of the 21 century. By 2031, there will be almost twice as numerous older Americans as today, a drastic increase from 37 million today to 71 million. Currently, there are fewer workers to support our retirees. When Social Security was first created, there were 40 workers supporting every one retiree. At the same time, most workers did not live long enough to collect hideaway benefits from the system. Since then, the demographics of the society have changed dramatically where people are living longer and having fewer children.