Question

What are current challenges and possible solutions to social security?

Answer 1

1. A falling worker-to-beneficiary ratio
One of the biggest problems in Social Security is a demographic shift, the retirement of baby boomers. Between 2010 and 2030 more than 70 million baby boomers enter the rate of retirement, means a big surge in the number of eligible beneficiaries. There just not enough new workers in the labor force which can replace those retiring boomers.

2. Rising life expectancies
Another big demographic shift program relates to the rising life expectancies. In the mid-1960s, the life expectancy of the average adult in the United States was about 70 years. By the mid-2010s, life expectancies increased. This improved life expectancy attributed to better health education, medical care, and improved pharmaceutical options.

3. Near-record-low bond yields
For the consumer and businesses, falling interest rates have been a blessing. Low rates have allowed homeowners to refinance their mortgages, and new homeowners to purchase homes with low rates. Businesses able to expand, hire, and make acquisitions for low cost. Low interest rates have had the opposite effect on people and funds looking to make money from fixed-income assets.

4. Congressional stalemate
The final big issue for Social Security is Congress do not be in any rush to correct what looks to be an imminent cash program shortfall. Despite having more than a dozen Social Security fixes , including multiple options to raise revenue through taxation, reduce benefits..