...Social Security and Retirement in the United Stated Com156 Date Social Security and Retirement in the United States It is important to plan for retirement because Social Security alone will not cover all of our needs by itself. I will also explain the need for another source of income other than Social Security. Social Security alone will not be enough to cover one’s needs when he or she retires simply because there is no one that can survive off less than $2000.00 a month. The way the government is borrowing from Social Security and the way it has been projected, some believe there will be no more Social Security in years to come. This is why every adult in the United States should start planning when they are younger for their retirement. Social Security is a program that was developed to ensure that people of retirement age will have money to live off of when they do decide to retire. This program was created in 1935, and was called “the system of old age benefits.” In 2007, the Social Security Administration had a net worth of about 785 billion. The expenses that year were about 594 billion dollars. The year of 2007 had 49 million people that received benefits. It is said that by the year 2018, negative effects on the federal budget are going to be experienced. The government has borrowed millions of dollars from Social Security, $159 billion in 2004 to be exact, and that is not the only time it has happened. According to the Social security website...
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...Retirement security Name Institution Course Date Income Inequality: A Hindrance to Retirement Security Holland, K. (2015). On retirement security, US rank far behind others. CNBC. Retrieved 8 November 2015, from http://www.cnbc.com/2015/02/09/ In this article, the author suggests that America lags behind 18 other countries in retirement security because of the high-income inequality observed in many states in America. The author suggests that according to the recent study, the United States offers little support for retirement security services unlike other developed countries. The author quotes Sweden, Denmark, and Switzerland as among countries that have good retirement security systems. Many characteristics define these economies. First, most of the nations that score higher than the United States in retirement security have high tax burdens. However, these countries have a narrow income inequality. In addition, most countries are also improving on the gap between the poor and the rich. The universal healthcare schemes provided by these countries have also contributed to the good ratings of the most countries that have better retirement schemes than the United States (Holland, 2015). The author has focused on highlighting the importance of retirement security as a key pillar in economic developments. The author clearly states that the United States social security problem lies with the expanding income inequality. The author states that in order to...
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...Retirement security Name Institution Course Date Income Inequality: A Hindrance to Retirement Security Holland, K. (2015). On retirement security, US rank far behind others. CNBC. Retrieved 8 November 2015, from http://www.cnbc.com/2015/02/09/ In this article, the author suggests that America lags behind 18 other countries in retirement security because of the high-income inequality observed in many states in America. The author suggests that according to the recent study, the United States offers little support for retirement security services unlike other developed countries. The author quotes Sweden, Denmark, and Switzerland as among countries that have good retirement security systems. Many characteristics define these economies. First, most of the nations that score higher than the United States in retirement security have high tax burdens. However, these countries have a narrow income inequality. In addition, most countries are also improving on the gap between the poor and the rich. The universal healthcare schemes provided by these countries have also contributed to the good ratings of the most countries that have better retirement schemes than the United States (Holland, 2015). The author has focused on highlighting the importance of retirement security as a key pillar in economic developments. The author clearly states that the United States social security problem lies with the expanding income inequality. The author states that in order to...
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...Retirement Planning: Plan for the Unexpected Many adults are optimistic about retirement, but many will be unsuccessful in preserving the lifestyle and standard of living to which they have become comfortable because they will neglect to plan and save. In fact, some people do not even attempt to calculate what their needs will be when they retire. In the past, Americans could count on Social Security, Medicare, and pension plans directed by their employer to help plan their retirement; however, today it is entirely different. The future of both the Social Security program and the Medicare program are uncertain, and to compound the problem, most employers no longer offer defined benefit plans. Some employers offer contribution plans, such as 401k plans; however, that means that people need to have self-discipline and exhibit regular patterns of investing to ensure a comfortable retirement. Citizens must be active and take responsibility for their own financial security. Not only do people have to calculate how much money they will need for ordinary living expenses, but they will also have to calculate how many years they will live in retirement. In addition, they need to recognize the impact that inflation will have on spending power and determine how much money they will need to cover medical and long-term care expenses if they arise. Although the Social Security program will play an important role in retirement, Americans must create a plan that covers every cost, including...
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...Social Security as a Form of Retirement It has been argued that there is no need for a separate retirement plan because when we reach the retirement age Social Security will cover our needs. The truth is American’s don’t know that the Social Security System is failing. To meet your own personal needs when their needs when they retire, all American’s are in need of a retirement plan. Millions of the country’s citizens depend on Social Security, yet the program is unsustainable. . “But Social Security was never meant to be the only source of income for people when they retire. Social Security replaces about 40 percent of an average wage earners income after retiring and most financial advisors say retirees will need 70 percent or more of pre-retirement earnings to live comfortably” (Social Security Online, 2011 para. 4). Continual changes in the Social Security System make it almost impossible to count on Social Security as a sole source as a retirement plan Social Security is a fixed income that increases marginally. Retirement is something that should be planned for carefully. The Social Security Program was created to provide benefits to retirees, the disabled, survivors of workers who have died, and dependents of beneficiaries. ”A one-time payment of $255 is payable to the surviving spouse if he or she was living with the beneficiary at the time of death, OR if living apart, was eligible for Social Security benefits on the beneficiary's earnings record for the month of...
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...States, we do not need to plan for retirement. Social Security will cover our needs when we are retired.” Thesis: Retirement is a time to break away from a hectic schedule and enjoy life. Retirement also can be a time of change and unexpected challenges. Planning for retirement with a solid financial investment is the key to providing financial security for life’s “golden years.” Relying solely on Social Security benefits to fund your retirement will place your financial security at risk. Organization: Order of importance. Purpose and audience: To show a solid financial plan for retirement is possible at any age, and the importance of not relying on Social Security as a sole means of taking care of day-to-day expenses. This essay is intended for an audience interested in learning how to make wise choices for their retirement, especially those who are planning to rely on Social Security benefits only. I. Relying solely on Social Security to fund for retirement may be a recipe for financial failure. A. Current research states the Social Security fund may be depleted of funds by the time most people are ready to retire in the next ten (10) years. B. Provide government statistics indicating current rate of payouts as opposed to program’s available funds. C. Current economic research showing of increasing cost of living expenses versus Social Security benefit increases, or lack thereof. II. Relying solely on Social Security benefits can have other far-reaching...
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...RETIREMENT: HOW PREPARED ARE YOU? The Actuary asks A Faculty Lecture by Arnold Ouendo Department of Mathematics & Statistics University of Cape Coast OUTLINE • WHAT IS RETIREMENT? • THE FIVE PILLARS OF RETIREMENT SECURITY • REASONS TO PLAN FOR RETIREMENT • HOW TO PLAN FOR RETIREMENT • POST-RETIREMENT RISKS • SUMMARY • CONCLUSIONS WHAT IS RETIREMENT? • As we grow old, we work less, produce less, and earn less; • We need to secure sources of income other than wages to support ourselves; • Used to contrast a period of gainful employment with a period when an adult is no longer gainfully employed; WHAT IS RETIREMENT? • People often work continuously up to 40 years prior to retiring; • Upon retirement, the retiree relies on the public or private retirement system and/or personal savings for income; • Some workers are beginning to look for opportunities to gradually ease into retirement – often called “phased retirement” THE FIVE PILLARS OF RETIREMENT SECURITY • • • • Social security (SSNIT in Ghana) Employer-sponsor retirement plan Personal savings Earnings from employment after retirement • Income from family members, life insurance, health insurance, and general insurance. REASONS TO PLAN FOR RETIREMENT • Break down of the informal systems – Changes in the family structure – Urbanization, mobility, war, famine, and aids – Family attitudes HOW TO PLAN FOR RETIREMENT TOP 9 WAYS TO BEAT THE CLOCK AND PREPARE FOR RETIREMENT HOW TO PLAN FOR RETIREMENT • Know your retirement...
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...Retirement Planning and Social Security In the United States, we do not need to plan for retirement. Social Security will cover our needs when we retire. This is a common misconception among Americans simply because the Social Security program has been such a vital part of most everyone who has retired in our country for so many generations. We as Americans have grown to trust that our country is going to be not only able to give a portion back to us in our older years, but we feel it is our right as Americans to finally receive a little financial peace after a lifetime of labor and dedication. While all of these feelings are completely justified, there are a few questions we need to ask ourselves to ensure that freedom. We need to decide what exactly are our needs going to be at this point in our lives, and what we can realistically look forward to from Social Security, and finally educate ourselves on the alternatives and supplements that may be offered to us. Naturally you will want to know how long your retirement money will last you. First you must tackle an even tougher question; How long will you live? The life expectance for both men and women has increased over the past several years mostly due to such great strides in healthcare. If we only knew what to expect it would make planning much more precise. There are a few fun ways to gather an educated guess, by going to the Paul Beson Faculty Scholarships Aging Research Program you are able to fill out a life expectancy...
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...II. Demographic Paragraph on your topic, statement of the problem, delineation of a human diversity issue. (To be submitted in the 8th week) By now, you should be able to articulate a clear topic title of your management project. Create an introduction to your topic by defining a problem/issue that is encompassed by your two readings. Using the Tentative Annotated bibliography and topic statement from week 3, expand your discussion of the connections of your topic to the required components for the project: Systems Theory Model, human diversity, some aspect of family or consumer resource management. After you have developed the connections, delineate the problem/issue by highlighting statistics and facts that make this an important problem or issue for which the class should be concerned/interested. You should go outside the two articles that you have read to find this information. An example might be citing such things as “1 of every 2 marriages ends in divorce” to focus attention on how frequently the marital system breaks down to introduce why you are focusing on how to make a marriage last. Note: this assignment is to total approximately 400 words. (Make sure to identify a source for your statistics/facts that is other than the two articles read.) Title: Parental Behaviors Effecting Children Introduction: From the time that a child is born to their adulthood, they are being influenced by their parents, from participation in physical activity to stress responses...
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...Changes in Workforce Demographics and the Future of Work and Retirement Dr. Jost Lottes Institute on Aging Portland State University No single trend will play a larger role in shaping the social, economic, and geopolitical order throughout the developed and developing world than global aging A historic transformation approaches— the “inversion” of the age pyramid. •!Populations throughout history have all shown a steep pyramid-shaped age distribution—with more young than old people. •!In the near future, starting with developed countries, the distribution will transform into an inverted pyramid— with more old than young people. Pyramid inversion in the developed world—1950 to 2050. year 1950 median age 28.6 Pyramid inversion in the developed world—1950 to 2050. year 1960 median age 29.6 Pyramid inversion in the developed world—1950 to 2050. year 1970 median age 30.6 Pyramid inversion in the developed world—1950 to 2050. year 1980 median age 31.9 Pyramid inversion in the developed world—1950 to 2050. year 1990 median age 34.4 Pyramid inversion in the developed world—1950 to 2050. year 2000 median age 37.6 Pyramid inversion in the developed world—1950 to 2050. year 2005 median age 39.3 WHERE WE ARE TODAY Pyramid inversion in the developed world—1950 to 2050. year 2010 median age 40.8 Pyramid inversion in the developed world—1950 to 2050. year 2020 ...
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... | |Smoothing a household's living standard requires using a sophisticated mathematical technique called dynamic programming to solve a number | |of difficult and interconnected problems. Advances in dynamic programming coupled with today's computers are permitting economists to move | |from describing financial problems to prescribing financial solutions. | |Conventional planning’s targeted liability approach has some surface similarities to consumption smoothing. But the method used to find | |retirement- and survivor-spending targets is virtually guaranteed to disrupt, rather than smooth, a household’s living standard as it ages.| |Moreover, even very small targeting mistakes will suffice to produce major consumption disruption for the simple reason that the wrong | |targets are being set for all years of retirement and potential survivorship. | |But with this economics approach, planners can not only smooth their clients’ living standards, but also raise them. For example, they can | |determine precisely by how much living standards will rise if their clients wait to take Social...
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...Retirement: The End of the Road? Retiring is another life decision that many have to make. It’s not always easy or well thought out because like many choices people are forced to think and react quickly. There are different factors that influence one’s decision and the choice is not always what you had planned. Studies and researchers have suggested reasons why people retire and have explained life after work, but times have changed which means people have changed. Retiring does not have the same value for everyone; it is not what some look forward too because everyone will not retire and live a life of luxury. Retirement is not the same experience for everyone, but it does open doors to a new life experience. Although there are many reasons and different views and outlooks, retiring could be full of opportunities and possibilities. Retirement is what you make it. Sixty-five is not the magical number of retirees anymore. Some are retiring early while others sixty-five and older are still working. Family, health, race and gender are some aspects that influence one to retire. “Men are more likely to decide to retire when their wives become eligible for Social Security ben¬efits; wives are more likely to be influenced by their husbands’ decisions and the couples’ overall eco¬nomic situation”, (Markson, E. W. & Stein, P. J., pp. 212, 2012). Women earn less so they have less money saved. They don’t know how to plan so they don’t know what do. They don’t invest and if they don’t...
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...School. JULIO J. ROTEMBERG JOHN T. GOURVILLE New York Life and Immediate Annuities In July 2009, Ted Mathas, the chairman and CEO of New York Life Insurance Company (NYL), was satisfied with the bet he had placed on immediate annuities back in 2002. An immediate annuity was a financial product sold to a current or soon-to-be retiree. In the annuity’s simplest form, a 65-year-old person would give NYL a lump sum, say $100,000. In return, NYL would provide that person with a guaranteed income stream, say $650 a month, for the rest of his or her life. In 2002, immediate annuities were a somewhat neglected $120 million annual business for NYL. But because Americans were living longer and because corporations were cutting back on their retirement benefits, Mathas saw immediate annuities as the ideal vehicle to guarantee retirees a lifetime income. By 2008, first under Mathas and later under NYL’s senior vice-president Paul Pasteris, immediate annuities had grown into a $1.4 billion business for NYL, making the company the undisputed leader in the field (see...
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...RETIREMENT Everyone may ask once in his lifetime, “What does one need to have a comfortable retirement?” When people are young, they think they have many years ahead before planning for retirement. People look forward to retiring, maybe moving to another state, going on vacation, or simply just enjoying the golden years. While Social Security was not intended to be a retirement plan, but rather a retirement supplement or safety net, many American retirees have relied heavily on this monthly benefit to sustain him. Many Americans were/are not fortunate enough to have worked for a company that provided an ample pension or any pension plan. The lower and middle classes in the United States, out of necessity, have survived in their post working years on Social Security. Even though that may not have been the intent of the program that is the hard reality. Middle class and upper class individuals have had the luxury of acquiring a little extra money to set aside or to invest for their retirement. Most Americans expect Social Security to provide for them in their retirement years. However, as many people know from reading, listening, or watching the news, Social Security is in financial distress. Congress is discussing changes that need to be made for Social Security to survive even as a reduced entitlement. Therefore, Social Security may no longer be relied on as sufficient for even the barest necessities of life. Therefore people should consider alternatives for future...
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...Kimberly Clark Professor Camille Castorina ECO 405-001 February 1, 2015 Social Security and Medicare are critical federal programs, in America, that promotes income stability among millions of households. Social Security does so by providing a steady stream of income to replace wages lost due to retirement, disability, or death. Medicare provided health benefits to the elderly and disabled. While both of these programs make sense, both are struggling to keep up with their growing demands. Social Security is a tax that every working individual and their employer pays. These taxes do not go into a “personal” account; as one might think. Instead, the benefits that are received by the current retiree is being paid by today’s workers and today’s worker will be paid by the next generation of workers; a pay-as-you-go-system. Unfortunately, for retirees, benefits will not be received by the amount he/she pays into Social Security but on their earnings history and retirement age. Social Security is a hot topic, one that our current administration is unwilling to address; even with a looming presence of issues by 2020. A program that has been plagued by funding issues caused by our elected government officials. To quote the Social Security Administration itself: "Social Security's total expenditures have exceeded non-interest income of its combined trust funds since 2010. ... Since the cash-flow deficit will be less than interest earnings through 2019, reserves of the combined...
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