Question

If you were an advisor to the President, what would be your recommendations for the long-term solvency and sustainability of the Social Security Program?

Answer 1

This is the benefit provided by US-federal government to all American citizens those who become unemployed, disabled, diseased, and retired. Employer and employee both contribute a portion of gross salary equally in this fund and at the retirement of employee benefits come from the government.

Social security is in danger in 21^st century because of increasing retiring benefits. Improved technology in medical science increases life expectancy of people, which increases burden of paying more retirement benefits. Therefore, there may be fund crisis in future.

Recommendations are as below:

No.1) Increase in retirement age: It is around 67 years in the US in order to get full retirement benefits. It should be extended to 70 years so that there will be more accumulation of fund. Birth rate decreases in the country and at the same time life expectancy of people increases; therefore, arranging fund becomes difficult. This thing could be solved if people are having few more years in job.

No.2) Limit the benefits: Retirement benefits like pension amount should be reduced by 10% to 20%. This thing should increase the available fund in hand and its sustainability.