Social Security Covering All Needs of People When Retired - Essay Example

? Number] Plan for Retirement because Social Security is not enough The issue of stability of social security was evolved in 1990s when the issue was brought in front of the nation for debates. Since then it remain a controversial issue and people of different school of thought and perception use to keep different thoughts regarding the reliability upon the social security (Megan, p1). There are some people having firm faith upon the social security however as the financial and economic situation of the country is changing in respond to different national and international financial crisis, the perception of people about the national security funds is also changing. People at large now believe that the social security funds are not enough to provide financial shelter to the retired people and one should plan for his retirement without expecting that he will get enough from the national social security fund to fulfil all of his needs of the retired life (Brown et al, p83). The national social security program relies upon the taxes of the existing working force. The danger of the fiscal imbalance always remain associated with the social security funds because the number of retired people eligible to draw the funds anytime exceed the number of the workers paying to the system. This imbalance will cause the social security funds to run in deficit and the retired people will no longer be able to draw the desired amount of funds from the funds. The economic instability drawn by the financial recession and increase in the unemployment within the country has also increased the probabilities that the national security funds will run out few years before it has been projected by the financial experts (Stephen, p1). On average, the social security funds provide $1,076 per month to over 54 million Americans (Brown et al, p83). This number is expected to increase every year with the rise in the number of retired people however; the number of the taxpayers is not increasing with the same ratio. It has been reported that the social security has to pay out $45 billion more in retirement, disability and survivors' benefits than the collections made from the payroll taxes. It clearly indicates that the recipients of the social security are more than the tax payers and in the coming years it is expected to record more imbalance in the ratio of retired and tax payer people. The government fiscal deficit has been increased to $1.5 trillion in 2011 due to which the funds available to pay the retirees are also expected to shrink in the coming years (Brown et al, p83). The issue of running out of the social security fund is great point of concern for the people in United States because the generally people use to reply upon these funds to meet their needs of the retired life. The social security funds could be deem as source of getting enough for the retired life but as the economy of the country is witnessing transformational changes due to number of factors it could no longer be a wise decision to reply upon the social security funds for the retired life. The people should now focus upon their individual planning so that they could spend their retired life with peace and financial security (Brown et al, p83). When the social security program was initiated in 1980s the fund reached the level of $2.5 trillion surplus within few years and it was expected that it will sufficiently pay out the benefits to the people until 2037. The projected year of running out in deficit is still not much close but the funds are already drained and the social security funds are now not enough to pay funds to all the eligible people until and unless the fund is provided from any other source. The danger of the collapse of the national security funds could not be overlook in the current situation where there is high level of economic uncertainty, instability and unemployment in the country (Megan, p1). It has been reported by most of the credible news sources like Associated Press, BBC and CNCB that the social security funds will run on deficit from 2011 and it is expected that this deficit would not be covered until 2037. This is a long time period and running in deficit for such time period affirm that the social security funds could not act as reliable source of providing security to the retired people and rather replying upon these it is much better to look towards the ways of generating income in the retired life or saving enough in the working life that one can manage all its expenses without waiting for the social security funds (Brown et al, p83). The numbers of retired people are getting much more than the working people and the taxes paid by the working people are not enough to pay the funds to all the retirees (Megan, p1). The situation demands that the people who are in working condition must look towards different ways through which they could generate some income in their retired life. They should consider investing in some businesses or trust or becoming engaged with some organization to provide their services in exchange for money (Brown et al, p83). The struggling economy of the country is affecting each and every sector and the social security funds are also experiencing its negative effects without any exception. The social security funds are not enough to pay the retired people and it is imperative that the government must look towards the other ways through which the funds could be provided to the social security. If one thinks about relying completely upon the government provided social security funds that it would be nothing but a perilous and unwise decision that will cause stress and anxiety to the people when they will find the funds insufficient to meet their needs. The negligence of this issue could make the retired life problematic and troublesome and if one wants to have peaceful and contented retired life then it is imperative that attention must be given towards personal investments and financial plan rather expecting 100 percent from the government social security funds. Work Cited Stephen Ohlemacher. Social Security fund to run out by 2037 - Fund slides into permanent deficit, AP: Associated Press, 2011. Print. Megan Coleman. Social Security to run out by 2037? What it means for you. CNY Central Today, 2011. Print. Online: http://www.cnycentral.com/news/money/story.aspx?id=573125 Brown, Jeffrey R., Jeffrey B. Liebman, and David A. Wise. Social Security Policy in a Changing Environment, US: University of Chicago Press, 2009. Print. Read More