How to Take a Position on Social Security Issues

Social security is a social welfare program for all Americans. Americans can receive social security benefits after retirement starting at age 62 or, sooner, if they are unable to work because of a disability. Because the money for benefits comes from people currently paying social security payroll taxes, some people fear there will be an issue with a shortfall in the future as the exceptionally large baby boomer generation retires.

Difficulty: Moderately Easy

Instructions

1. Decide if you think anything needs to be done to fix the social security issue. Some people believe social security is fine as it is. Others believe the system will be fine far into the future and therefore nothing needs to be done about it yet. However, some believe immediate action is required.

2. Think about whether you support increasing the cap on the amount of earnings which can be taxed for social security. Currently, only the first $97,500 of income per person per year are taxed for social security purposes. Increasing this amount would increase the taxes of people making over $97,500 per year, but would bring in more money for social security.

3. Consider whether social security tax money should be invested in the stock market. Currently, the money is invested in government bonds. Investing it in the stock market could potentially bring a higher rate of return and build up the social security trust fund. However, some people believe investing social security taxes in the stock market is too risky and could put the program in danger.

4. Make a decision about means testing social security. Under this proposal, the wealthiest Americans would pay social security taxes, but not receive the benefits when they retire. This would leave more money for less wealthy Americans. However, some feel this would be unfair for those who pay the taxes but receive no benefits.

5. Give some thought to increasing the age limit. Currently, people can begin receiving some benefits at 62 years of age and can receive full benefits at 67 years of age if a person was born 1960 or later. This age limit could be increased so less money would be paid out every year. However, this means people will have to retire later in life or not receive social security benefits for a few years after retirement.

6. Choose a position on the social security privatization issue. Privatization would require people to form their own private retirement accounts instead of paying taxes into the social security trust fund. This would ensure people would have retirement money available to them. On the other side of the issue, some believe low income Americans would have trouble saving enough money for retirement and believe social security should remain a public responsibility.

[PhillyPhan]

on 1/15/2008 RE: Step 5 The retirement age has already been raised. If an insured wage earner was born in 1960 or later, the retirement age to receive full Social Security benefits is now 67. For those born between 1937 and 1960, the retirment age gradually increases. More information is available at http://www.socialsecurity.gov/retire2/agereduction.htm