Tuesday, October 1, 2019
Social Security :: American Government, Social Security Deficit
In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. Social security will post nearly $600 billion in deficits over the next decade as the economy struggles to recover and millions of baby boomers stand at the brink of retirement, according to new congressional projections, (Ohlemancher, 2011). The funds that Social Security has save to payout their beneficiaries have an expiration date. In the upcoming years more people will be eligible for retirement, however, many of them will only be pay 78 percent of their benefits, (Ohlemancher, 2011). The government needs to find solutions for the upcoming deficits and be able to help Social Security Administration to no run out of fund s. Issues In 2011, Social security administration will collect about 4.6 million retirement, survivor, and Medicare claims. 3.3 million Social Security and SSI claims and 326,000 SSI aged claims, (Social Security, 2011). These claims have to go to procedures that can take months to be approval. During these procedures, many more applicants are eligible to apply for social security and more money is pay to beneficiaries. In 2011, social security will collect $45 million less in payroll that it pays out in retirement, disability and survivor benefits, according to the nonpartisan Congressional Budget Office, (Ohlemacher, 2011). 54 million people receive retirement, disability or survivor benefits with an average payment of $1,076 a month, (Ohlemacher, 2011). Social Security Administration has being able to save and invest taxpayers money into U.S. Treasury department. The money save into U.S. treasury department accumulates interest for future Social Security beneficiaries. Social Security has built up $2.5 trillion surplus since the retirement program was last overhauled in the 1980s, (Ohlemacher, 2011) The money that Social Security invested in the treasury department is no physically available for social security beneficiaries. The $2.5 trillion has been borrowed over the years by the federal government and spent on other programs. In a promised to pay off the surpluses Treasury department has issued bonds to Social Security, Guaranteeing payments with interest (Ohlemacher, 2011). If the situation gets worst for social security and asks federal government to pay off, thereÃ¢â¬â¢s no way that social security will obtain the money because thereÃ¢â¬â¢s no federal funds to pay off the debts to Social Security.