Respond to your classmates’ postings by asking probing
questions to your peers in the responses about the major
challenges and solutions proposed. A minimum of 200
words
DISCUSSION 1 (Ray)
Discuss the implications these challenges have on your ability to develop budgets for an
organization?
There will be several issues that social security will face in the upcoming years
especially when the population is increasing and fewer employees are contributing to the
system which causes grave concern and creates a big problem within the system and it is
anticipated that the system will not be able to pay the pensioners their full payments
which will cause a even more problem if things do not change.
However there are ways to combat this problem by raising the retirement age and
that will reduce the length of time people receive their benefits and also the government
can raise the payroll tax which they are doing now so employees have to contribute to
the system, [Center on Budget and Policy Priorities].
Evaluate the role fundraising plays in filling the gaps in services?
Having fundraising events is a way to close the budget gap and those who depend on
Social Security programs may get extra resources through donations by people and
organizations which will boost the Social Security trust fund, [Social Security, USA.Gov].
People depend on Social Security programs and fundraising is a essential part of the
success of the program and it is important to keep in mind that even with fundraising the
system will still face long-term financial challenges. Therefore it is important that those
in charge of Social Security approach the budget with caution and consideration for the
ones who are entitled to the benefits within the system.
Payroll taxes are the primary source of revenue for the Social Security system in the
United States and a social insurance program and those who are entitled to the benefits
usually are those who are retired, handicapped, and people who lost their spouse also
receive financial assistance from the program which it was developed with them in mind,
[Social Security Act, 2020].
Reference
Center on Budget and Policy Priorities, https://www.cbpp.org/research/socialsecurity/financial-challenges-facing-social-security-and-medicare-larLinks to an external
site.
USA.gov, https://www.usa.gov/social-securityLinks to an external site.
Social Security Act, https://www.history.com/topics/gresat-depression/social-securityact
Respond to your classmates’ postings by asking probing
questions to your peers in the responses about the major
challenges and solutions proposed. A minimum of 200
words.
DISCUSSION 2 (Kayla)
“Social Security is fueling intergenerational tensions. Younger workers are skeptical
about the ability of Social Security to support them upon retirement. They are nervous
that Social Security will buckle now that the baby boomers have begun to retire. Some
are also anxious because they are saving less than their parents. ” (Demig,2018).
• Discuss the implications these challenges have on your ability to develop
budgets for an organization.
The fact that many younger people do not save money the way that the older
generations did creates a financial burden on many families. These struggles are
particularly obvious in single parent families. It is hard to save money and plan for your
future when you are barely able to make ends meet every month. Yes, you are most
likely contributing to Social Security, but most people would have to work until they are
70 or older to be financially stable enough to retire. Even then, most Americans retire
and then find part time jobs as a supplemental income.
• Evaluate the role fundraising plays in filling gaps in services.
Fundraisers are great for extenuating situations. However, fundraising can only go so far
and for so long. Social security has taken on the role of some financial assistance for
those in need, but there are still so many more families out there that need more than
the small amount of help given.
I would love to see more information readily available to those in financial turmoil. There
needs to be free financial training modules, assistance in understanding where your
money is going and what your return rate looks like. Many young people struggle to
understand how the Social Security system really works. Policies are ever-changing and
not always explained in detail the way it needs to be for most to understand. Bottom
line, communication on financial entities needs to be increased drastically. We need to
see more real-life breakdowns in how our money is being distributed. Dumb it down if
you will for the younger generations struggling to grasp the concept of Social Security.
Reference
Karger, H. J. & Stoesz , D. (2018). American social welfare policy: A pluralist approach (8th
ed). Upper Saddle River, New Jersey: Pearson.
Respond to your classmates’ postings by asking probing
questions to your peers in the responses about the major
challenges and solutions proposed. A minimum of 200
words.
DISCUSSION 2 (Neshia)
Social Security’s long-term foundation could be more promising. Social Security is also
expected to run out of its $2.8 trillion in spare cash by 2034. This funded program pays
out to the following groups: old age, Survivors, and Disability Insurance Trusts, with
payees totaling 60.5 million each month. If the program continues to serve its people, it
is believed to burn through its excess cash reserves, which could lead to benefits being
cut, averaging 21% by 2034. Not only is Social Security facing the problem of potential
depletion of funds but crises such as a falling worker-to-beneficiary ratio, rising life
expectancies, near-record low bond yields, and congressional stalemates.
On the flip side, more new workers in the labor force must be needed to replace
retiring boomers. Between 2015 and 2035, the worker-to-beneficiary ratio is forecast to
fall from 2.8-to-1 to as low as 2.1-to-1 (Hagen, 2023). In short, there will need to be
more payroll tax revenue to support the growing number of beneficiary payments
heading out. Social Security did not foresee life expectancy improving as much as they
have, resulting in longer life expectancy and allowing individuals to draw Social Security
payments for an extended period. The under-the-radar issue for Social Security has been
falling interest rates. Congress does not see a need to correctly review the imminent
cash shortfall for the program. Despite having more than a dozen Social Security fixes,
including multiple options to raise revenue through taxation and reduce benefits,
Congress still needs to make progress on implementing a solution.
Making the necessary changes now for the future could help fill the gap in services by
doing the following:
• Change the cost-of-living adjustment (COLA) that increases retirees’ and
beneficiaries’ current benefits (Vernon, 2023).
• Increase the average retirement age, currently 67 for people born in 1960 and
after (Vernon, 2023).
• Reduce survivors’ benefits (Vernon, 2023).
• Reduce benefits for future retirees (Vernon, 2023).
• Require 40 years, instead of 35 years, of participation in the system to earn
full benefits (Vernon, 2023).
References
Hagen, K. (2023, May 4). Understanding social security benefits. The Motley Fool.
https://www.fool.com/retirement/social-security/
Vernon, S. (2023, March 17). To Fix Social Security, there are no easy choices, but it’s
doable. Forbes. https://www.forbes.com/sites/stevevernon/2023/03/16/fixing-socialsecurity-no-easy-choices-but-its-doable/?sh=7cec16d840b8
