Question

Social security cannot go bankrupt in a legal way, but is bankruptcy still a useful way to describe social security's fiscal path? Explain

Answer 1

Social security : social security is that security in which the government of the country provides social insurance to unemployed, disabled or those who doesn't have any income to live their livelihood.

The retirement of 76 million member baby boom generation is the most. Obvious problem.

We are now fast approaching the unsustainable reality that there are barely two working people paying taxes to support the benefits being paid to each Social Security recipient. As that equation continues to deteriorate, the situation becomes increasingly unbalanced.

Why social security cannot go bankrupt?

Can social security actually go bankrupt?

Let's talk about it :

• The end of social security will result in impoverishment of tens of million of people.
• Whatever the party in power in the country social security collapse will likely to be disappear.
• If social security will really go down, it will be a economic tsunami for the whole country.
• If the social security is eliminated from the country, the result will be dislocation and even on unrest.

Likely outcomes from social security :

• There should be reduction in the benefits of the employees of the government from which it can be invested in the social security.
• The government can raise payroll taxes and can borrow from any institution to cover the short falls or debt.
• It can also reduce the retirement age of employees.
• It can print the money for the keep going concern of social security.

Social security to be negatively by following ways :

1. The benefits are lowered as compared to the prior.
2. The benefits are cheaper in dollars i.e. Whenever money is printed it affects the economy's inflation.

Proactive approach :

• Saving money : if your life depends on social security then you will have to save at least 20% of your income before your retirement because social security value is not stable, it can fluctuate according to economic conditions.
• Cost of living : by lowering the cost of living it can give the benefit as to spend less money from which the remaining money would be used in other investments so can live easily after the retire.
• Come out with debt : if you have borrowed money from any institution then you may pay all your debts. Because you have already saved your money which can be used to pay debts or to cover the debts.