What Is Being Done To Fix The Social Security System?
The social security system was developed to provide financial/economic assistance to anyone faced with unemployment, disability, sickness, old age or death. The system is financed by current employers and employees and the money is paid to those persons receiving social security checks. However, the system is in trouble since the number of people taking money is greater than those who are paying into the system. Efforts being put in fixing the social security system include:
Raising The Eligibility/ Retirement Age
Many social security systems are looking up for ways to try and cut on the number of individuals’ receiving full benefits from the system. Therefore, by increasing the age of eligibility for receiving full social benefits, the overall payouts can as well be reduced significantly. Hence, cut back on the deficit that is currently being projected in the years to come.
Involve More Workers
In any country it’s common to find individuals who are exempted from paying social security taxes or are just not included. A move to try and ensure all employees are contributing to the social security system is aimed at ensuring an increase in the revenues of the system leading to an overall reduction in deficits experienced or projected.
Diversification Of Investments By The Social Security System
Some funds of the social security system are being invested into equities, bonds and other securities where they earn reasonable amounts of interest which will help sustain the program. Moreover, some of these funds are also invested into the stock markets for similar purposes. This has been projected to be able to significantly reduce the projected deficit.
References For More Solutions
Note that most of these decisions are greatly affected by the political situations as well as the current and expected economic situations in a country. More solutions can be found at: usnews, money.cnn.com and some other pages that you can find on the internet.