Monday, November 4, 2013

Senior 2014 social security decrease

As much as I would have liked this article to be about senior of 2014 in high school getting money this happens to be a about the senior citizens of 2014 in our government and society. Based on the article it says that seniors of 2013 will see and decrease in their social security by the year 2014. They're saying that instead of having the increase to 1.7%  like we had this year, they will only have a 1.5% coverage by social security this year. The question is how this affect the senior citizens knowing that the benefit so much from social security?  Will this effect be good of bad? Well first we have to see how do they benefit from social security.

How senior citizens benefit from social security:

1) Social Security is the major source of income for most of the elderly.
This means that the elderly people that have retired can still get a check that helps to support their necessities even though they don't have a paying job anymore. 

2) Social Security provides more than just retirement benefits.
Tho means that elderly people who are diabled can still get benefits that can assist them with there healthcare needs. Also Survivors of deceased workers account for about 11% of total benefits paid.

3) An estimated 161 million workers, 94% of all workers, are covered under Social Security. 
This means 51% of the workforce has no private pension coverage. This also means 34% of the workforce has no savings set aside specifically for retirement.

Lastly social security has proven to increase life expectancy. For example In 1940, the life expectancy of a 65-year-old was almost 14 years; today it is more than 20 years. By 2033, the number of older Americans will increase from 45.1 million today to 77.4 million. There are currently 2.8 workers for each Social Security beneficiary. By 2033, there will be 2.1 workers for each beneficiary. 

With these facts we can see that though this decrease is beneficial to the taxpayers it won't be beneficial to the senior citizens. In other words decrease in taxes means and decrease in coverage and resources for senior citizens in 2014. Small businesses will increase on employment but this means that it will be harder for the senior citizens to get important things like healthcare that is largely influenced by the social security. 

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