The status and role of the elderly in the future will increase because the birthrate has dropped to an all-time low. b. There will be an elderly revolution, termed the “silver-haired rebellion,” which will place much of the lost power and status back into the hands of the older segment of society. c. As the rate of technological change accelerates, knowledge quickly becomes obsolete, and this decreases the status and role of the elderly (they are no longer the storage houses of technological knowledge; libraries and databanks have taken over this role). d. In the future, there will be a major reorganization of kinship and the family, which will restore power to the elderly.
The Social Security Trust Fund thrives off the baby boomers that were born after World War II. Now, these baby boomers are retiring and they will “throw the budget…out of whack” (Schiller 265). When this happens, there will be fewer workers per retiree and a primary source of government will disappear. We should be worried about this because the treasury will not easily be able to pay back the Social Security Trust Fund. As a result of this, Congress would have to raise taxes as well as make cuts in certain programs and as Schiller says, “none of these options is attractive” (Schiller 265).
However, the negative effects on health insurance and health market trickle down to the society. The society through high taxes will have to absorb the negative effect of Medicare to the elderly in the society. The society is socially obliged to take care of the elderly and with the rising cost of health acre, which cannot be fully absorbed by the government it will be a small price to pay to keep the elderly healthy. Children who provide finances to cover medical bills for their elderly parents benefit considerably from Medicare because with the rising cost of medical care it would put financial strain on them. “What about the positive for society effects of caring for the elderly?” The family structure has changed considerably over the years.
About 80% of female Baby Boomers worked which was also a contribution to the two income family. The higher percentage of two income families contributes to the simulation of the economy from purchases. Based on the financial planning literature provided by, The Social Security Bulletin (2003/2004), a fifty percent replacement rate represents a shortfall that could create economic challenges and necessitate lifestyle adjustments. The fifty percent replacement will not only have an effect on benefits but also the simulation of the economy. A little over a third of the current retirees but over two-fifths of near term and Baby Boomer retirees will replace less the three-quarters of their preretirement income.
What does research/statistical data say about: The average age for retirement from the workforce? Workers are now retiring at older ages because the incentives to retire have changed. Since the mid-1990s, the average retirement age has risen from 62 to 64 for men and from 60 to 62 for women, according to a new Center for Retirement Research at Boston College analysis of Census Bureau data. The trend toward later retirement has been driven by declines in traditional pensions and retiree health benefits offered by employers, changes in the way Social Security benefits are calculated, better education and health, and less strenuous jobs that people are able to perform at older
Times are changing and some feel that social security might not be around for too much longer. Being in a deficit the government will borrow against surpluses that social security may have. Causing the likely hood of social security running out as predicted in recent
Current Event 3: Social Security Basically this article is trying to help citizens all over the United States to not give into Social Security benefits so quickly. The reason for this statement is once you start to hit the retirement age people immediately want to take out money from their benefits. The problem with doing this irrational idea is that you can potentially be receiving larger payment if you just wait a couple years longer. For example, if you decide to take out money early at the age of 62 your monthly payments will be 25% to 30% smaller than if you wait until full retirement age. On the other hand, full retirement age varies from the ages 66 to 67 for people who are currently in the workforce.
This potential economic downfall threatens to cause an upsurge in tax rates, while we see less and less available employment, in the lower-level job sectors. Thus, the future of the job market will be greatly influenced by the aging population and the decisions they make. “Work and Workers in the Twenty-First Century,” written by Richard W. Judy and Carol D’Amico discusses the effects of the American population as it ages, life expectancy on the rise and overall decreased family sizes. The United States Public Policy and the employers have not yet realized the unfavorable effects of the “baby boomer's” retiring. By the year 2020, it is estimated that 20 percent of the American population will reach retirement age.
This would allow individuals to set up their own personal Social Security accounts in which the taxes taken out of their earnings would be set aside in a private account especially set up for when they retire or stop working for whatever reason. Also with these funds, individuals would have the option to invest these funds in the stock market and potentially have a much higher return then what the current system of what the government provides for these individuals. There are many individuals who find this to be the best way to reform social security, claiming that the current way is extremely detrimental to the average American’s hope that the taxes they are paying for their future will provide for them when they are no longer able to work. Some have even described the current system similar to that of a government sponsored ponzi/pyramid scheme where as stated earlier, the funds coming in from current payroll taxes are made to look like surpluses. With the privatization of Social Security, this will give workers the contractual right to their retirement benefits, instead of the current system where the government has no liability to provide individuals with Social Security.
It was marketed towards the citizens of the United States as a tool to “put Americans back to work” without adding “a dime to the deficit”(Epstein, 2013). This legislation is proving to be unsustainable due to it being hard to price on an annual basis (Epstein, 2013). While unemployment rates have been going down, the increase in jobs leans more towards part-time rather than full-time work (Epstein, 2013). This can also be attributed to the change in unemployment benefit laws, which restricted the length of time you can claim