Economic Benefits and Future Outlook of Social Security

Topics: Social Security, Retirement, Medicare Pages: 3 (926 words) Published: July 8, 2006
The Economic Benefits and Future
Outlook of Social Security

Social security must change for the future challenges about to be faced. The social security administration has been here for almost 70 years. It is here to provide for retirement, disability, and survivor's insurance. About 7.5 million people get monthly survivor benefits, and more than six million get disability. There are about 45 million people who receive retirement, survivors and disability benefits. For an average wage person with a family, social security survivor benefits are equivalent to a $354,000 life insurance policy or a $233,000 disability insurance policy. Also, a 35-year-old man who earns $40,000 a year with a wife and kid would get $1,900 a month if disabled. If he died, his family would get $2,400 in survival benefits.

Social security also offers medicaid. This is insurance for low income families. Medicaid is the largest source of funding for medical and health related services for America's poor. Each state establishes its own eligibility standards, determines the type, amount, and duration of service. They also state the rate of payment for services and administer their own program. Just because a person is eligible for Medicaid in one state, it doesn't mean they are eligible in another state.

The social security system is made so there is a link as to how workers and employers pay into the system over their working years and how much they will get back in benefits. If you make a lot of money, than you will get a larger benefit amount than the workers who do not make as much. But, the benefit formula is set up so that a person making lower wages will get a higher percentage of their pre-retirement earnings. There are nine in 10 American retirees who receive social security. For about 2/3 of the elders today, social security is their major source of income. For 1/3 of our elders, social security is their only income. There is only 11% of...
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