Awarding Social Security in USA
Since the early twentieth century, most countries worldwide consider social security systems as expensive hence affecting the country’s economic growth. Social security is very important, especially in this age of globalization, the system should be designed to adjust to changes in population and family structures (Börsch-Supan, and, Coile, 2018). Social security provides individuals with a source of income after retirement or in case of disability or long-term health issues. The paper is a discussion on how social security is awarded in the United States.
In the United States, social security is a federal insurance program that provides monetary Helpance to people with low income, retired or people with disabilities. The social security award various types of income, such as survivorship benefits, disability income and retirement income. The United States spends billions of dollars in awarding social security benefits (Börsch-Supan, and, Coile, 2018). The United States awards social security income and benefits based on age, especially the retirement income, where the terms change according to life expectancy.
Social security program awards retirement income to persons at the age of sixty-five. If a person is legible for more than one social security, the person collects higher security. The United States social security provides the retirement benefit to the retiree and children and survivors (Walker, 2019). Additionally, widows and widowers, children under the age of eighteen, disabled children and dependent parents have the right to acquire the retirement income if the employee dies.
Disability benefits are awarded to persons unable to work due to mental or physical disability that lasting for more than a year. The social security program is also known as the federal old-age, survivors and disability insurance (OASDI). The income offered is based on the earnings during the employee’s working years. The government uses the social security trust funds to control and manage contributions towards the social security system (Börsch-Supan, and, Coile, 2018).
The social security trust fund holds surplus money and sometimes the government invests the money in form of treasury bonds. According to the emerging trends, the changes encountered may stop running in 2021, and the social security program may paralyze in 2035. The two examples of social security trust funds include the survivors and old-age trust funds (Walker, 2019). Citizens of the United States must have a social security card collected in the social security administration, which follows various requirements. One should be a citizen of the USA; second, if not a citizen, the individual should be working in the USA. Third, the individual should have acquired permanent residence in the country.
The latest trends in the United States social security system include funding the social security program, privatizing the public sector insurance plans and excluding people from the social protection program. The United States of America seeks to stabilize the system by adjusting to changes in the economy (Walker, 2019). The united states have considered raising the retirement age, reducing spendings, increasing taxes and borrowing money. The administration uses social security funds for other purposes, such as federal budget planning and debts payment. The nation is seeking to address the issue by avoiding cases where the security funds will be used.
The united states social security program has been of great Helpance, especially to individuals with disabilities and retirees. The security program is designed to support life and avoid cases of poverty to unemployed persons. The program has been receiving several setbacks, such as funding, misuse of funds and privatization. The federal government is working towards stabilizing the system by developing new ways of funding the program and proper use of funds.
References
Börsch-Supan, A. H., & Coile, C. (2018). Social security programs and retirement around the world: Reforms and retirement incentives–introduction and summary (No. w25280). National Bureau of Economic Research.
Walker, E. (2019). Privatization of Social Security Retirement Systems: Lessons and Comparisons from Chile, Argentina, and the United States. Policy Perspectives, 97-116.
