One of the most challenging 21st public policy debates in the US is about the Social Security reform and whether it is sustainable in the near future as the program is in a crisis. This is again coupled with an aging population who receive much higher returns than the late participants to the program. With the current demographic changes, the retirement of the baby-boom generation and a higher life expectancy there's a big doubt whether the Social Security can real support the current generation and so it could be unwise for one to put hopes on the Social Security as retirement age nears.
The Annual Report of the Social Security trustees released recently shows that by the year 2018 Social Security will be paying more benefits than it can collect in form of taxes, although the gap will be covered for by cash redemptions the assets will be exhausted by 2042 (Tanner M. 2004).Want an expert to write a paper for you Talk to an operator now
Politicians are trying to provide solutions to avert this obvious crisis and ensure that the system is in place or delay this problem for another few decades before maybe a final solution is found.
The best way out for the federal government is to increase the retirement age to 70 years. In this way, people would want to think on better ways to make a living before hitting 70 years and depending on the government, the idea of starting a sustainable business will especially be fruitful. The federal government will also take the best proposals like that one of investing the Social Security revenues in programs that pay back on the investment. These investment options include bonds, stocks and high returning investments and ensure that the money earned from these investments is 'untouchable' for say the next 20 years and be mandated by a presidential order (John D. 2004). Thus establishing personal retirement account, PRA, is one sure way of to give future retirees the hope to enjoy an improved standard of living after retirement. In conclusion, Social Security PRAs will avert forcing the senior citizens of this country into poverty and consequently leaving their children and grandchildren to begging.
Structured PRA systems can work and give improved benefits in a cost effective way (John D. 2004).