The document discusses the challenges facing Social Security as the baby boomer generation retires. As life expectancy increases and more baby boomers retire, there will be fewer workers paying into Social Security to support the growing number of retirees collecting benefits. This will strain Social Security's finances unless changes are made. The document proposes examining data on Social Security's current state and future projections to develop a plan that would adjust the retirement age, benefits amounts, and payroll taxes to help ensure the long-term sustainability of Social Security.

1. Social Security
BY: JACOB KRAMER, JAKE LORTON, JACK NORMAN, AUSTIN
MCLAUGHLIN

2. What is the Problem?
 Social Security faces a great problem in the near future as the
largest generation of people in American history (baby boomers) is
going to be retiring soon and will be expecting their social security
checks and Medicare assistance. The population over the age of 65
will grow much faster than the working population; in 2031 the
amount of Americans over the age of 65 will double from 2008,
increasing from 39 million to 75 million people (Ydstie). There must be
a solution made by the government soon as beneficiaries will grow,
but tax rates have not been planned to change. It is not yet clear
how all the social security and Medicare will be funded by the
government.
 We chose this issue because it directly affects us as we enter we the
workforce within the next few years. We are the ones who will have
to pay for social security

3. Scenario
 Jeff has taught for over 30 years and has just retired and plans on
travelling the world (he plans on using his social security checks to
fund his travels). However, one day he opens his social security
check and notices that he hasn’t received enough money. What
happened is that with millions of baby boomers retiring in a short
time period the younger generation is having trouble paying all the
recently retired people. Without enough money being put into
social security the government must ration what is left. In return, Jeff
does not have the money necessary to travel the world anymore.

4. Background Information
 In the early 1930’s the Great Depression hit America causing poverty
rates among senior citizens to exceed 50%. Bank failures led to loss
of many American’s retirement savings.
 The original Social Security Act, which was enacted in 1935, required
that monthly benefits be paid to qualified individuals aged 65 or
older based on their wages from employment before age 65.
 The Act was created during Franklin D. Roosevelt’s first term in office
and was passed by congress as part of the New Deal. The Act was
made in order to minimize new seen dangers during the recession
including old age, poverty, and unemployment.

5. Cause for Concern
 According to this data only
about 10% of the people
surveyed feel like if they retired
right now, they have enough
money to feel comfortable
 About 40% of the people don’t
have a retirement strategy and
only 19% have a back up plan
if they are forced to retire
sooner than expected.

6. How many Baby Boomer are
there?
 This graph shows that the baby
boomer generation was born
between 1940-1980.
 Between this time frame there
were over 100 million people
born during this time period

7. Statistics on Social Security
• Social security is responsible
for over one-third of retired
people’s future earnings.
With retired people
dependent on social
security America needs to
find a solution.
As the baby boomer
generation starts to retire we
can see the ratio between
worker to beneficiary shrink.
Workers are now expected to
lose more money out of their
pay checks to support social
security.
While the retirement age has
stayed the same the life
expectancy of males has risen
to 80 while women are now
expected to live around 85
(Reznik). As a result retired
people are receiving more
checks than in the past.

8. Solutions for Social Security
Raise the Retirement Age
Pros
 It recognizes that most likely we
all need to work as we begin
to live longer due to better
medicine and health care
Cons
 Many claim that nobody
would want to hire a 65 year
old over a younger person
coming out of college

9. Solutions for Social Security
Privatize Social Security
Pros
 Investing 40% of trust fund
assets in equities (investing in
the Stock Market) can lead to
over a 20% in retirement funds
in as little as 10 years(Gross)
Cons
 There are large groups of
people against risking their
social security in the stock
market through equities for fear
of another recession and losing
all their savings

10. Design Solution
The Problem
 There won’t be enough people to put
in the proper amount of needed for
social security in the future. Without the
proper amount of money being put
into social security the elderly will not
have enough money to life above the
poverty line after they retire. This will
cause mass amounts of government
assistance to the elderly because they
won’t be able to pay for basic health
care
Our Solution
 To create a program that will take
data and information pertaining to the
current state of social security and the
direction it seems to be going in. It will
combine this with taxpayer information
and how much money people eligible
for social security need to sustain. Using
all of this information and turning it into
knowledge an action plan will be
developed involving three changes in
the system: how much taxpayers give
to social security, how much money
the baby boom generation will
eventually receive in social security
and an the age limit of who gets social
security checks.

11. Target Market
 There are two target markets for
this solution. They are the baby
boom generation and the
generation to follow. The baby
boom will be affected because
they will have to ration properly in
order to save enough money to
live comfortably. The following
generation must accept paying a
higher tax altogether because
that’s the simplest way to collect
enough money for social security
to live on.

12. Possible Out lash
 Both of these target audiences will first think poorly about the
solution because it affects both of them negatively, but they will
then realize that it is necessary and that the changes, because of
the program, are as minimal as possible and they will learn to
embrace the changes.

13. Previous Plans put in Place
 During our research we found that the federal government has
been aware of the growing concerns that deal with social security.
However in politics, social security is known as the third rail because
politicians who try to mess with it usually end up killing their political
career.

14. Work Cited
 Aubuchon, Craig P. "Can Social Security Survive the Baby Boomers?"Economic Synopses (2007): n.
pag. Research.stlouisfed.org. 2007. Web. 13 Nov. 2014. .
 Coping with the Demographic Challenge: Fewer Children and Living Longer." N.p., n.d. Web. 11
Nov.2014.
 Goss, Stephen C. "The Future Financial Status of the Social Security Program." The Future Financial
Status of the Social Security Program. 30 Nov. 2010. Web. 11 Nov. 2014.
 "How Will Boomers Affect Social Security?" National Academy of Social Insurance. N.p., n.d. Web.
10 Nov. 2014.
 Reno, Virginia P., and Elisa A. Walker. Social Security. Chicago: National Academy of Social
Insurance, 2009. NASI. National Academy of Social Insurance, June 2009. Web. 11 Nov. 2014.
 Ydstie, John. "Baby Boomers Begin to Claim Social Security." NPR. NPR, n.d. Web. 13 Nov. 2014.