eate a 8 pages page paper that discusses social security reform plan. The first aspect that needs to be changed in the current Social Security policy is the issue of life expectancy. As we speak, most of the payments made are based on the nineteen thirties and forties. At that time, many beneficiaries were expected to live up to an age of fifty five, however, this life expectancy has increased upwards and it is currently at seventy seven years. Experts agree that it would definitely make sense to include this age related issue in the process of making reforms. (Concord Coalition)
There are two major options which the US government can take to tackle this issue. They can either increase the amount of taxes being collected from social security contributors or they have the alternative of reducing the amount of benefits going to retirees. The latter proposals are based on the following interrelations
When life expectancy has increased, then it may be very difficult for the current crop of workers to meet the total social security payments. This is because beneficiaries must be paid social security for as long as they are alive and this means more payments. Additionally, if the amount of payroll contributions is not changed, then it may be inadequate to cover these costs.
In order to avoid extremities or the winner-takes-it-all approach, it is essential to split these costs between the two parties involved i.e. the social security contributors and the beneficiaries.