Social Security after Retirement

Depending on Social Security After Retirement

Name: Andrew D. Bell
University: University of Phoenix
Course: UNIVRSI!" #$%P$SI!I$N AND #$%%UNI#A!$N II

Date: Se&tem'er ()* +,(,
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Social Security after Retirement

Social Security is a system that is used 'y nearly all the moderni-ed countries of the world. In
the U.S* the system was desi.ned to offer older citi-ens with a source of income after retirement.
#urrently* the system has included 'enefits from disa'ility* thou.h the central aim remains
retirement 'enefits. !he system may 'e 'eneficial to some* it remains /uestiona'le whether one
can de&end or rely on social security after retirement. !his essay analy-es whether social security
&ro.rams can 'e relied on after retirement.
Durin. these tou.h economic times that our country is facin.* the idea of retirin. is enou.h to
ma0e anyone crin.e with &anic. Peo&le are used to wor0in. hard their whole lives to ena'le them
to have a relaxed and worry1free life after retirement. #urrently it is evident that most &eo&le are
em'racin. the idea of enterin. into the Social Security system which in theory offers them the
economic security they need the day they retire 23echsler* ())45.
Nearly all wor0ers throu.hout the country are faced 'y &ro'lems that arise after retirement.
Illness* disa'ility and &lain old a.e are 6ust some of the concerns that face Americans enterin.*7
!he 8olden "ears.7 3hatever the case may 'e* it is /uite /uestiona'le whether one can de&end
on social security 'enefits after retirement. !his is a /uestion that demands an answer.
%ost of the US wor0force 2a&&roximately )9:5 is covered 'y the Social Security System.
Accordin. to 3echsler 2())45* Social Security systems form the &rimary le. for what has 'een
historically refereed to as the ;three1 le..ed retirement stool71 the other two 'ein. the &ension
&lans and &ersonal savin.s only if they are availa'le. !he real truth is that Social Security has
'een &rovin. inade/uate in the &rovision for the needs of most families after retirement. !his is
true since the &ercenta.e that Social Security will re&lace is determined 'y the family<s &re1
retirement income. !he hi.her the income* the hi.her the 'enefits* and the lower the income* the
lower they are .ained 23echsler* ())45.

3echsler 2())45 further denotes that* Social Security was not desi.ned to offer total economic
security durin. old a.e. It was 6ust a safety net a.ainst &overty and the trials of old a.e* 'ut many
&eo&le have termed it as their &rimary source of their retirement income.

3henever a wor0er is wor0in.* the sense of res&onsi'ility to one another* and to family
mem'ers is always on his or her mind. !he wor0er will always as0 himself whether his family
will have resources to draw u&on after either his death or illness.

Accordin. to the %assachusetts !eacher<s Retirement Plan* it is not necessarily a must for
every'ody to re.ister in a Social Security fund in order to en6oy the 'enefits of retirement. !here
is a &ossi'ility for a retired teacher to wor0 after retirin. rather than relyin. on the 'enefits of his
social contri'utions only. Accordin. to the site* a retired teacher can wor0 for a maximum of )=,
hours in a calendar year thus su'stitutin. his social security 'enefits. !hou.h the salary that a
teacher .ets from teachin. after retirin. is less than the salary he used to .et* 'ut it offers a
source of income for retirement.
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Social Security after Retirement
Accordin. to >otli0off* %arx* ? Ri--a 2+,,=5* in their 'oo0 titled ;Americans Dependency on
Social Security* the eli.i'ility re/uirements to enter the Social Security System is an issue that
has trou'led the minds of many Americans. !o 'e eli.i'le for the 'enefits of Social Security*
there are certain eli.i'ility conditions that one must meet and in addition* he or she must a&&ly
for the retirement 'enefits. !his mi.ht 'e hard for some &eo&le hence the system 'ecomes
unrelia'le. li.i'ility is usually 'ased on a.e* the len.th of time one wor0s in a &articular
institution* and the amount one has earned in social security covered 6o's. !he wor0ers wishin.
to retire must 'ear in their mind that retirement 'enefits from social security are 'ased on their
retirement a.e. Receivin. these* 'enefits 'efore the set a.e will lead to lower 'enefits and vice
versa.
Social Security.com ar.ues that* a wor0er can choose to retire as early as =+ years 'ut this will
lead to a reduction of his 'enefits to a tune of @,:. Receivin. the 'enefits at the re/uired normal
retirement a.e will mean 'i..er amounts of money. It is therefore not easy for those &eo&le
wor0in. under tem&orary terms in an or.ani-ation to /ualify for the system. $ne must have
reached the re/uired a.e which ran.es from =, years and a'ove and must have ac/uired the
credits re/uired 29, credits5 in order to rea& the 'enefits of the Social Security System.
23echsler*())45.

3echsler 2())45 ar.ues that* thou.h one may /ualify for the 'enefits of the system* there are set
limits that his family can receive. Beneficiaries may 'e denied access to the 'enefits if the
wor0in. &erson dies and he was not insured.

Social security<s lon. fundin. is a'le to &ay a'out three fourths of the 'enefits that it had
&romised for youn. wor0ers 2those in their @,s and +,s5. It is a system that only focuses its
resources to those who are in dire need for them. So for youn. &eo&le* it is not &ossi'le for them
to .et the same amount as that their &arents .ot. !he youn.er the a.e means the hi.her the
amount in terms of income. !herefore* the fundin. is lower to Americans enterin. the system at
retirement a.e. Social security is not a system to solely de&end on into retirement since it will
focus on those who have no other forms of income or savin.s. 2>otli0off* %arx* ? Ri--a*
Novem'er +,,=5.
In closin.* one cannot rely on Social Security as a main source of income into retirement. It is
an error in 6ud.ment for one to ex&ect that Social Security will &rovide for their futures. %any
dou'ts exist whether or not the &resent contri'utors to the system will see any of the ca&ital they
invested at all. A sim&le &ersonal retirement savin.s &lan can offset any deficit that remains in
one<s retirement 'ud.et &lans.

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Social Security after Retirement
Reference list
Kotlikoff, L!ar", # $ Ri%%a, & 'Novem(er )**+, -Americans Dependency on Social
Security,. National #ureau of /conomic Researc0, 1orking &aper No 2)+3+
40e official 5e(site of t0e !assac0usetts teac0ers6 retirement system '!4RS,,')*2*,,
Accessed on 27
t0
Septem(er, )*2*,
80ttp:99555massgov9mtrs9)mem(ers9))retiree9))5ork0tml
1ec0sler, ! '233:, ;Can you depend on Social security? USA today, (Society for the
advancement of education <indArticlescom Accessed on 27
t0
Septem(er, )*2*
8 0ttp:99findarticlescom9p9articles9mi=m2)>)9is=n):3?=v2)@9ai=2+?*:+?)9
555socialsecuritygov ')**?, -Early or late retirementA. Accessed on 27
t0
Septem(er,
)*2*, 80ttp:99555ssagov9BAC49Cuickcalc9early=late0tml
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