Social Policies to Address Social Problems

Social Security

By: Michael Shields Sociology 431

• The 1935 Social Security Act aimed to establish a system of income for older persons so they can continue to support themselves financially.

Social Security Act

• Gives all People a basic level of security to avoid financial disaster.

• The secondary purpose of social security was to ensure some basic protection for the older adults who needed it the most.

• Social Securities greatest aim is to the dignity of our social value and to foster human interdependence.

The Goal of Social Security

1.) Old-Age and Survivors Insurance (OASI)2.) Disability Insurance (DI)3.) Hospital Insurance (HI), which is funded through Medicare. 4.) Revenues for the supplemental insurance portion of Medicare.

Social Security is financed through separate sources…

Social Security Trust Funds

• The Social Security Trust Funds raise revenues equally from the mandatory participation and contributions of employees and employers through payroll taxes.

• Funds are also raised from income based on current tax revenues.

•Coverage now insures ninety-four percent of current workers.

Social Security

• Social Security shouldn’t be the sole source of retirement income, but protection against financial poverty.

• Social adequacy refers to a shared societal responsibility and mutual obligation to provide a basic standard of living for all potential beneficiaries regardless of the size of their economic contributions.

• Individual equity refers to an individual’s benefits that reflect that person’s actual monetary contributions proportionate to what they have paid into the system.

Social adequacy vs. Individual equity

“PAY AS YOU GO SYSTEM”• Current workers support retired and disabled workers.

• Payroll taxes are invested in special US government bonds, then flow out to eligible beneficiaries.

•Today’s retirees won’t get back their contributions until seven years of getting social security.

•Young workers today shouldn’t expect to get their contributions back for eleven years of getting social security.

The Decline of Social Security

• By the year 2030, 1 out of 5 people will be over the age of sixty-five

• With so many people retired will there be enough social security to go around?

“Graying of the Welfare State”•When Social Security was first enacted, life expectancy was 61 years, while it is 78 years today.

•The ratio of workers to retiree should be 3 to 1 by 2030 and around 2 to 1 2050.

•Polls show that young Americans support protecting social security even though many lack confidence in its future.

• The Social Security Administration sends statements to US workers that are over the age of 25.• These statements lists the years of employment, earnings, and Social Security taxes paid each year. They also list the persons benefits considering when they retire. This gives the worker a heads up on planning for the future.

Future Social Security

References Slide

Hooyman, Nancy R., and H. Asuman Kiyak. Social Gerontology: A Multidisciplinary Perspective. Boston: Allyn and Bacon, 1988. Print.