Respond to your classmates’ postings by asking probing questions to your peers in the responses about the major challenges and solutions proposed. A minimum of 200 words

DISCUSSION 1 (Ray) Discuss the implications these challenges have on your ability to develop budgets for an organization?

There will be several issues that social security will face in the upcoming years especially when the population is increasing and fewer employees are contributing to the system which causes grave concern and creates a big problem within the system and it is anticipated that the system will not be able to pay the pensioners their full payments which will cause a even more problem if things do not change.

However there are ways to combat this problem by raising the retirement age and that will reduce the length of time people receive their benefits and also the government can raise the payroll tax which they are doing now so employees have to contribute to the system, [Center on Budget and Policy Priorities].

Evaluate the role fundraising plays in filling the gaps in services?

Having fundraising events is a way to close the budget gap and those who depend on Social Security programs may get extra resources through donations by people and organizations which will boost the Social Security trust fund, [Social Security, USA.Gov].

People depend on Social Security programs and fundraising is a essential part of the success of the program and it is important to keep in mind that even with fundraising the system will still face long-term financial challenges. Therefore it is important that those in charge of Social Security approach the budget with caution and consideration for the ones who are entitled to the benefits within the system.

Payroll taxes are the primary source of revenue for the Social Security system in the United States and a social insurance program and those who are entitled to the benefits usually are those who are retired, handicapped, and people who lost their spouse also receive financial assistance from the program which it was developed with them in mind, [Social Security Act, 2020].

Reference

Center on Budget and Policy Priorities, https://www.cbpp.org/research/social- security/financial-challenges-facing-social-security-and-medicare-larLinks to an external site. USA.gov, https://www.usa.gov/social-securityLinks to an external site.

Social Security Act, https://www.history.com/topics/gresat-depression/social-security- act

Respond to your classmates’ postings by asking probing questions to your peers in the responses about the major challenges and solutions proposed. A minimum of 200 words.

DISCUSSION 2 (Kayla)

“Social Security is fueling intergenerational tensions. Younger workers are skeptical about the ability of Social Security to support them upon retirement. They are nervous that Social Security will buckle now that the baby boomers have begun to retire. Some are also anxious because they are saving less than their parents. ” (Demig,2018).

• Discuss the implications these challenges have on your ability to develop budgets for an organization.

The fact that many younger people do not save money the way that the older generations did creates a financial burden on many families. These struggles are particularly obvious in single parent families. It is hard to save money and plan for your future when you are barely able to make ends meet every month. Yes, you are most likely contributing to Social Security, but most people would have to work until they are 70 or older to be financially stable enough to retire. Even then, most Americans retire and then find part time jobs as a supplemental income.

• Evaluate the role fundraising plays in filling gaps in services.

Fundraisers are great for extenuating situations. However, fundraising can only go so far and for so long. Social security has taken on the role of some financial assistance for those in need, but there are still so many more families out there that need more than the small amount of help given.

I would love to see more information readily available to those in financial turmoil. There needs to be free financial training modules, assistance in understanding where your money is going and what your return rate looks like. Many young people struggle to understand how the Social Security system really works. Policies are ever-changing and not always explained in detail the way it needs to be for most to understand. Bottom line, communication on financial entities needs to be increased drastically. We need to see more real-life breakdowns in how our money is being distributed. Dumb it down if you will for the younger generations struggling to grasp the concept of Social Security.

Reference

Karger, H. J. & Stoesz , D. (2018). American social welfare policy: A pluralist approach (8th ed). Upper Saddle River, New Jersey: Pearson.

Respond to your classmates’ postings by asking probing questions to your peers in the responses about the major challenges and solutions proposed. A minimum of 200 words.

DISCUSSION 2 (Neshia)

Social Security’s long-term foundation could be more promising. Social Security is also expected to run out of its $2.8 trillion in spare cash by 2034. This funded program pays out to the following groups: old age, Survivors, and Disability Insurance Trusts, with payees totaling 60.5 million each month. If the program continues to serve its people, it is believed to burn through its excess cash reserves, which could lead to benefits being cut, averaging 21% by 2034. Not only is Social Security facing the problem of potential depletion of funds but crises such as a falling worker-to-beneficiary ratio, rising life expectancies, near-record low bond yields, and congressional stalemates.

On the flip side, more new workers in the labor force must be needed to replace retiring boomers. Between 2015 and 2035, the worker-to-beneficiary ratio is forecast to fall from 2.8-to-1 to as low as 2.1-to-1 (Hagen, 2023). In short, there will need to be more payroll tax revenue to support the growing number of beneficiary payments heading out. Social Security did not foresee life expectancy improving as much as they have, resulting in longer life expectancy and allowing individuals to draw Social Security payments for an extended period. The under-the-radar issue for Social Security has been falling interest rates. Congress does not see a need to correctly review the imminent cash shortfall for the program. Despite having more than a dozen Social Security fixes, including multiple options to raise revenue through taxation and reduce benefits, Congress still needs to make progress on implementing a solution.

Making the necessary changes now for the future could help fill the gap in services by doing the following:

• Change the cost-of-living adjustment (COLA) that increases retirees’ and beneficiaries’ current benefits (Vernon, 2023).

• Increase the average retirement age, currently 67 for people born in 1960 and after (Vernon, 2023).

• Reduce survivors’ benefits (Vernon, 2023). • Reduce benefits for future retirees (Vernon, 2023). • Require 40 years, instead of 35 years, of participation in the system to earn

full benefits (Vernon, 2023).

References

Hagen, K. (2023, May 4). Understanding social security benefits. The Motley Fool. https://www.fool.com/retirement/social-security/

Vernon, S. (2023, March 17). To Fix Social Security, there are no easy choices, but it’s doable. Forbes. https://www.forbes.com/sites/stevevernon/2023/03/16/fixing-social- security-no-easy-choices-but-its-doable/?sh=7cec16d840b8