•The 1935 Social Security Act aimed to establish a system of income for older persons so they can continue to support themselves financially.• Gives all People a basic levelof security to avoid financialdisaster.
• Social Securities greatest aim is to the dignity of our social value and to foster human interdependence.• The secondary purpose of socialsecurity was to ensure some basicprotection for the older adults whoneeded it the most.
Social Security is financed throughseparate sources…1.) Old-Age and Survivors Insurance (OASI)2.) Disability Insurance (DI)3.) Hospital Insurance (HI), which is fundedthrough Medicare.4.) Revenues for the supplementalinsurance portion of Medicare.
• The Social Security Trust Fundsraise revenues equally from themandatory participation andcontributions of employees andemployers through payroll taxes.• Funds are also raised from incomebased on current tax revenues.•Coverage now insures ninety-fourpercent of current workers.
• Social Security shouldn’t be the sole source of retirement income, but protection against financial poverty.• Social adequacy refers to a sharedsocietal responsibility and mutualobligation to provide a basic standard ofliving for all potential beneficiariesregardless of the size of their economiccontributions.• Individual equity refers to anindividual’s benefits that reflect thatperson’s actual monetarycontributions proportionate to whatthey have paid into the system.
• Current workers supportretired and disabled workers.• Payroll taxes are invested inspecial US government bonds,then flow out to eligiblebeneficiaries.•Today’s retirees won’t getback their contributions untilseven years of getting socialsecurity.•Young workers todayshouldn’t expect to get theircontributions back for elevenyears of getting social security.
• By the year 2030, 1 out of 5 people will be over theage of sixty-five • With so many people retired will there be enough social security to go around?
•When Social Security was first enacted, lifeexpectancy was 61 years, while it is 78years today.•The ratio of workers to retiree should be 3to 1 by 2030 and around 2 to 1 2050.•Polls show that young Americans supportprotecting social security even thoughmany lack confidence in its future.
• The Social Security Administration sends statements to US workers that are over the ageof 25.• These statements lists the years of employment, earnings, and Social Security taxes paideach year. They also list the persons benefits considering when they retire. This gives theworker a heads up on planning for the future.
References SlideHooyman, Nancy R., and H. Asuman Kiyak. Social Gerontology: A Multidisciplinary Perspective. Boston: Allyn and Bacon, 1988. Print.