Social Security Debate

Essay by anna181University, Bachelor'sA, May 2005

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Introduction- Have you ever wondered, do I have enough money to retire 30 years from now? What is the future of social security? Will I able to get benefits from the government when I retire? Well, the future of social security looks bleak even in face of proposed reforms. Social Security last year paid out roughly half a trillion dollars to 47 million Americans. However, if its trust fund runs dry as projected in 2042, it would be a severe loss to millions of Americans who do not have company backed retirement plans or other means to sustain retirement.

The main reason for the current Social Security debate is that Americans are living longer than ever. The social security program was designed in the 1930s when the life expectancy was 63, not its 77 or 78. When the baby boom generation retires in 2008, there is going to be tremendous overload on the system.

There will a huge number of individuals drawing Social Security benefits, but not enough people working to support them and pay those benefits. Under President Bush's plan, younger workers would have the option of diverting part of their Social Security taxes into stock or bond investments. However, this would be in lieu for a reduction in future guaranteed benefits. The President is adamant that workers can benefit from higher rates of returns from stocks and bonds. Polls show older Americans remain deeply skeptical of Bush's plan. In the most recent New York Times/CBS News poll, 64 percent of those aged 65 and over said it was a bad idea. There is stronger support among younger Americans for Bush's plan. Of those aged 18 to 30, only 37 percent opposed private accounts while 55 percent said they were a good idea. Democrats are also fiercely opposing...

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