Reforming the Social Security System

Wyatt Wilmshurst

Abstract:
The Social Security Administration is projecting towards a major financial dilemma. The United States retirement system is flawed and insufficient. The Social Security system is based off a pay as you go system, which means the money being paid into the system by current workers is distributed to current retirees, and this process continues in a cycle. There is now a major age gap situation due to the 'baby boomer' generation heading towards retirement. With the 'baby boomer' generation heading to retirement, there will be drastically fewer workers paying into the system. This issue will lead to a lack of funds these new retired people are counting on for retirement. Is there a way to adjust the Social Security System to fix this projected financial issue? According to a study by the American Institute of Certified Public Accountants, the Social Security funds will completely run out in 2033. This study aims to discuss various reforms that have been put forward to improve the Social Security system. Reform proposals include a variety of different approaches including; raising the full retirement age, increasing payroll taxes, changing cost-of-living calculations, adjusting the benefits formula, and raising the earnings cap.