Question

When would you expect the Social Security system to begin to experience difficulties, if any? Why?

Answer 1

Yes,social security system experiences difficulties too.Social security system is a scheme or welfare programme started by government inorder to help people who have low or no salaries,senior citizens,any kind of disability with medical assistance or some funds.Whenever there are no reserves or funds in the social security system or for anyother reasons,diffiulties might be caused.When production and output level is low,then profits,income,tariffs are not acquired bygovernment.This leads to low or deficit funds and in this case providing social security to public turns out to be difficult.Currently,there is a pandemic which destroyed the economies and people are having no livelihood.This made difficult for social security system since providing funds for all the people is not easy.If the stocks subscribed by social security system is not getting enough returns,then the system will run out of revenue income causing difficulty.Rise in span of people's life is also a challenge for social security system.If people live for longer span,then social security system should continue to provide medical and financial assistance to them.Even this is a difficulty for social security system.To overcome these difficulties,government should improvise their strategies to gain reserves and revenue income.Hence,social security system also faces or experiences difficulties in certain situations.