Introduction
Of all the gifts Baby Boomers will give to Millennials, a bankrupt Social Security program will be the most appreciated. The Social Security trust funds will exhaust all assets by 2035, at which point the program will have to rely solely on current revenues (Schobel, 2022). At that point, the money coming into the fund from all sources will only be enough to pay for around three-fourths of the program costs (Warshawsky, 2022). The Social Security program should be revised because it is still unsustainable, cannot supply sufficient financial security, and does not perform as an effective socioeconomic equalizer.
Discussion
The Social Security program cannot be funded due to previous patterns and initiatives. The Social Security Amendments of 1983 progressively raised the full retirement age to 67 and taxed up to half of an individual’s Social Security payout if their income exceeded a specified threshold. Future funding restrictions and a dearth of alternatives based on solid data might make the Security Program’s long-term goals unachievable. It is difficult for stakeholders to conduct an unbiased analysis of the United States Social Security initiative’s declining viability. These long-term solvency issues show that current reserves may be depleted within the next 12-15 years.
However, one can argue that the program is an essential foundation for stable financial flows into industrial activities, given the present demand for related services. Here, it should be stressed that a combination of factors, including rising unemployment rates and a lack of proper mitigation plans, has resulted in decreased program revenues, which in turn affects the beneficiaries’ financial stability. Moreover, the Social Security program cannot be sustained in the long run because it does not offer the intended recipients sufficient financial security. As more individuals become eligible for this type of assistance, the proportion of the population that can contribute is stable due to high unemployment.
Conclusion
Thus, the Social Security program has certain flaws that render it less viable and unable to provide the major recipients with appropriate financial security. These issues help to explain why the ineffectual endeavor has failed to achieve the nation’s goal of social equality. If this program is to fulfill its initial aim, a fresh method is consequently advised to update and enhance its efficacy.
References
Schobel, B. D. (2020). Effects of the COVID-19 pandemic on Social Security. Journal of Financial Service Professionals, 74(6), 34–38. Web.
Warshawsky, M. J. (2022). Reforming Social Security. National Affairs, 51, 18–37. Web.