To Rely on Social Security

To Rely on Social Security - To Rely on Social Security Or...

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To Rely on Social Security? Or Not To Rely on Social Security? That is the question. Brandon Hunter Com/156 Laura Babbit 2/26/2011
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Do Americans believe still believe that Social Security benefits will be all they need to retire despite the common knowledge of the current and future state of Social Security? According to a 2006 survey conducted by the Retirement Corporation of America which is a registered investment advisory firm located in Cincinnati, Ohio shows that nearly one in four Americans will look towards Social Security as their primary source of income. (Reed 2006) The reason Americans plan on solely relying a Social Security is the fact that the program has been around since the Great Depression (73 years) and that they will receive the same benefits that their grandparents are receiving now. The problem with Social Security is currently for every one retiree there are three workers putting money into the Social Security program however in just 10 years that number will change to two workers for every retiree. As millions of baby boomers approach retirement age, the programs annual cash surplus will shrink and then disappear. According to The Board Of Trustees Of The Federal Old-Age And Survivors Insurance And Federal Disability Insurance Trust Funds, between 2010 and 2030 the OASI cost will increase more rapidly than the tax income, due to the retirement of the large baby boom era. Annual cost will exceed tax income starting in 2017 at which time the annual gap will be covered by cash from redemptions of special obligations of the Treasury that make up the trust fund assets which will be exhausted by 2042. ( Goss 2007). What is being done to prevent this crisis from happening? The proposed ideas to fix the Social Security problem so far are to raise taxes, increase the retirement age, and cut current benefits. These ideas are not a real solution
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To Rely on Social Security - To Rely on Social Security Or...

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