About | Contact
InfoFilter.info
Social Security

Budgeting

Credit Cards

Credit Report

Debt

Life Insurance

Living Will

Mortgages

Online Banking

Retirement Planning

Saving Money

Social Security

Structured Settlement

If you are an older american and are aware of the problems with social security and the solutions being proposed by the Bush administration, it's only natural that you would be very concerned. If you are a younger american then you probably do not even plan on Social Security, and that is fine because you still have time to accumulate other means of retiring. But for someone who is not otherwise prepared and is nearing retirement age, the problems with Social Security talked about in the media can be very frightening.

However, if the proposed changes to Social Security were better understood, than many would realize that the proposed changes are a reason for celebrating rather than something to be feared. The following is a brief synopsis of the current Social Security situation and what the proposed Social Security reform would accomplish:

Contrary to what many people believe, the government has not accumulated and invested the social security taxes so that retirees receive the money they paid in during their working years plus a healthy return on that money. Actually the government has spent most of the Social Security money leaving in its place a bunch on IOU's, and current Social Security benefits are funded by working people paying into the system now. Because of the retiring Baby Boomers, there is more being paid out than is being collected and the system will soon be bankrupt.

The proposed changes would privatize a portion of the Social Security funds so that they would be invested and multiply at current market rates rather than being frivolously spent by the government. Under this plan there would be more available to pay current and near current retirees and the young working generation would also have something to show for the social security taxes they pay. The proposed changes would not take away social security benefits from current and near current retirees and it would improve the chances of today's workers acutely receiving some benefit in their retirement years also, whereas under the current plan today's young workers will not likely receive anything back for all their social security taxes.