Saturday, July 23, 2011

The Pulse: Fixing Social Security

What is Social Security’s purpose?
  • Provide a safety net for the elderly and poor
  • Started in 1935 by FDR during the great depression
  • Now provides disability and unemployment benefits
  • Intended to help people in retirement, not be their sole funding for retirement
What are the problems with Social Security?
  • It will go bankrupt if not reformed
  • Recipients making it their sole form of retirement
  • When started it provided full benefits at age 65, now they provide fill benefits at age 67
  • When started, Life expectancy was 62, today it is 78
  • The program does not allow enough productive years to fund retired years
  • There are too many baby boomers and too few workers to fund the program in the future
  • The program was never indexed to life expectancy
  • People will keep on living longer as technology advances requiring retirement ages to rise as well.
These are the solutions to Social Security’s problems
  • Move the full retirement age to 71, where it would be today if it had been originally indexed to life expectancy
  • Index the system to life expectancy the way it should have been from the start of the program
  • As people age, move them into mentoring, counseling, managerial roles for easier working years as they age to not lose their knowledge and expertise.
If you would like to contribute your own posts to this blog you can contact me at politicalpulsesite@gmail.com. I am open to creative ideas and welcome them.

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