SOCIAL SECURITY REFORM A.J. Elzey Derek Miller Chris Ambrose Joe Schoffstall Alan Wathen Development Great Depression made Federal action involving economic relief necessary Neither the States nor local communities had the ability to cover the needs of the desperate American people
27% of married couples rely on social security for 90% of their income
55% of unmarried people rely on Social Security for 90% of their income
Population of Asian Americans and Pacific Islanders is expected to grow over the course of the next couple of years
Working Hispanics make just over $26,000 a year compared to the national average of $38,000
Like American Indians and Asian Americans, Hispanics have longer than average life expectancies
Hispanic men make $11,426 on average
Hispanic women make $8,680 on average
37% of married Hispanics rely on Social Security for 90% of their income
62% of unmarried Hispanics rely on their Social Security for 90% of their income
Just like any other self-sustaining system, every issue revolves around money and distribution
With less personal savings, people are not in great place for retirement and heavily rely on social security when they are eligible.
Social Security Act signed into law
$21,000 avg. income $42,000
40 workers paying into one check 3 workers
Life Expectancy: 58 years 76 years
Retirement Age- 65
½ population lived to be 65 or older 74% live over
Currently, the UK, Sweden, and Chile have Private accounts
paying compulsory payroll taxes left people out of high rates of return in the US stock market
Debate put on backburner after 2000-2002 stock market downturn
40 year old person with an income just under $60,000, will contribute $284,360 in payroll taxes to the Trust Fund over their working life, and can expect to receive $2208 per month under the current program. The same 40 year old person, investing the same $284,360 equally weighted into treasuries and high-grade corporate bonds over his working life, would own a PRA at retirement worth $904,982 and paying an annuity of up to $7372 per month.
would let Americans save some of their Social Security taxes in personal retirement accounts (PRAs) that they own and that Congress can never legislate away. PRAs would strengthen Social Security by helping all Americans to increase their retirement income and pass on a nest egg to build a better economic future for their families.
-By the year 2027, the government will somehow have to come up with an extra $200 billion a year to keep the system afloat.
By 2033, the annual shortfall will be more than $300 billion a year.
By 2041, when workers in their mid-20s begin to retire, the system will be bankrupt – unless we act now to save it.