Stephen C. Goss has extensively written about the future financial status of the social security program for the Americans and for the whole world at large. He patently articulates that changes enacted in 1983 on Social Security are expected to bring dynamic revolution, such that the benefits and other compensations would be paid in full and on a timely basis until 2037. In 2037, trust fund reserves are expected to be virtually exhausted. After the reserves are used, continuing taxes will be vastly relied upon to pay 76% of the benefits. There will be need and the necessity for the Congress to deliberate on changes concerning the program. It is estimated that reduction of benefits by 13% or a sudden increase in payroll tax to 14.4% from 12.4% or a combination of these two strategies will lead to full payment of scheduled benefits for the next 75 years. In the article, Stephen Goss explicitly analyzes the financial state of the Social Security program. He fundamentally analyzes the aspects of solvency and sustainability. It also evaluates the effect of the social program on the federal budget. It is apparent that social benefits that Americans deserve will continue in the future with certain adjustments to be implemented by the congress and by the legislative bodies.
Many professional individuals look at the social security program and wonder if they will indeed get their benefits. This question may be answered by analyzing solvency of the Social Security trust funds. Solvency may be referred to as the position or capability of trust funds to cater for the Trust funds i.e. (OASI) Old-Age and Survivors Insurance benefits and for (DI) Disability Insurance benefits, are special. Together with the Hospital Insurance (HI) Trust Fund, OASI and DI have the vital characteristic that benefits can only be paid within the framework of trust funds assets that can be drawn to cater for members’ benefits. These trust funds cannot borrow when the reserves are not enough to cater for compensation. Existence of assets in future is thus important to cater for interest of members even in future.
It is important to analyze the financial status of the social security program since it enables members to be comfortable and to trust upon the funds. Without a clear picture of the future, it would be impossible to guarantee members that they are safe. They would feel uncertain with their monthly contributions to the kitty hence a need for them to feel safe. The writer of this article thus had the member’s interest in mind. Any member would perceive this information pertinent hence the need to read the article.
It is important for the social security service providers to know the future anticipation of the fund. This is because they are the people who will be obliged for the payment schedule. They need to acknowledge that if there are discrepancies or problems that can accrue in the future so that they can strategically plan for alternatives. Moreover, they need to...