Question

Given an ageing population and low work participation rate, over the next 50 years how will social security payments be maintained and what are the likely changes that will occur to support an already overburdened system?

Answer 1

Social Security is " any government system that provides monetary assistance to people with an inadequate or no income".

In US, this is usually called welfare or a social safety esp; when talking about Canada and European countries.

Everyone in the society, has a right to social security and is entitled to realisation, through national effort and international cooperation and in accordance with the organisation and resources of each state of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

This term also refers to some action or launching some development program with the objective of welfare of society.

There is a major role of government body to provide sufficient resources for food and shelter and to promote health and well being for the population at large and potentially vulnerable segments such as children, the elderly, the sick an the unemployed.

Services providing social security are often called social services.

But now the major concern arised, will we able to maintain social security with ageing population and lower work participation over 50 years. This is the really a big concern. Young population show least interest in work participation and there is ageing factor with the old people. So, this is the extra impose of financial burden on government to maintain the balance.

Some major steps can be taken by the government in this field like;

- educate young population so that they could earn and participate in country' s economy.

- provide small financial assistance to lower class people so that they could start some small business and earn their livelihood.

- government should reduce some tax slabs also.

- government should introduce some major attractive schemes for encouraging savings and Investments.

These are some steps for remedial purpose.