Social security is a program by the government to ensure that the people who have retired are getting their daily needs, their welfare generally and their families. The needs include housing, food, clothing and water. This is done by offering them assistance financially to enable them live a moderate life. However the administration of the social security leaves seventy nine percent to be made by the savings of the people who are retiring through their own savings that they make.The twenty one percent of the income of the retiree that remains will be made up by the social security (Gruber, 2007).
I agree with the statement “social security should serve as a foundation for employee retirement programs. Therefore, congress should explore more extensive revisions to the program to ensure that the next generation retirees will receive the benefit.” The next generation has to get an access of the benefits fully because if they don’t, some of the finances will be left in the system. Nevertheless, forty percent their levels will differ depending on the situation or a given circumstance, despite the fact that forty percent of their income is replaced by the social security. Moreover, when you start accumulating, the social security will adjust your payment depending on it. Therefore you benefits will be increasing accordingly over the years until seventy years (Sheshinski, 2009).
High life expectancy has changed the plans of retirement in the past years, hence individuals should make clear decisions on when to start taking their benefits and that is to be put in every employee’s retirement plan. One becomes able to receive the retirement benefits once they pay taxes and have worked under the instructions of federal act of insurance, hence they are now able to earn credits to which forty credits usually allows someone to be able to get the benefits of retirement. The people getting a higher income, the social security gives them a lower replacement and this could increase if they are married.
Gruber, J., &Wise, D. (2007). Social security programs and retirement around the world. In Research in Labor Economics (pp. 1-40). Emerald Group Publishing Limited.
Gruber, J., & Wise, D. (2011). Social Security Programs and Retirement Around the World: Introduction and Summary of Papers by.. (No. w6134). National Bureau of Economic Research.
Sheshinski, E. (2009). A model of social security and retirement decisions. Journal of Public Economics, 10(3), 337-360.
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BA 340 week 6 Discussion Social Security.docx