Social Insurance’s intentions were to prepare the American worker for a retirement free of indigence or relying on family members. Workers meet a minimal requirement of ten years of work history to be eligible for benefits. Social Security is paid for by contributions from both the employee and the employer. The benefit is paid commensurate to inflation, and allows both seniors and disabled Americans to survive without a working income for the rest of their lives.
The Social Security Trust Fund is a fund currently designed to bring in more revenue dollars than it needs paying benefits out to participants while maintaining a cash reserve of the funds. Old age and survivor benefits make up a significant portion of the Social Insurance trust fund while disability, hospital care and part D make up the remainder.
Our Government has repeatedly borrowed against the surplus funds over the years to payoff outstanding debts and stimulate the economy. However, this practice has left few means of actually sustaining the fund and ensuring its security in the future. Analysts have predicted that the fund may be depleted as soon as 2017 and that within 75 years actually experience an almost five trillion dollar deficit.
Since this forseen eventuality seems eminent, bean counters are dramatically cutting back benefits to participants in the program. These people are being forced into and below the poverty line simply because they may not have had any other plans for retirement and they must live on reduced benefits. Our government needs to make good on the loans they have taken from the Social Security funds and create viable plans to generate more revenue to ward off the pending doom of the immediate future.
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