2.74 million people filed for Social Security Benefits in 2009, and the nation's unemployment is at 9.5%. This larger-than-ever draw against Social Security has created a budgetary shortfall that is projected to become the de rigeur as baby boomers move further toward retirement.
In an article released today by the Associated Press, it was noted that nearly 3 out of 4 people filing for benefits are doing so under the "early retirement" Social Security program, which notably contains benefits at a reduced level. This is a pretty clear indicator of one or more of a few things. Either individuals are scared that benefits design will reduce benefits (or increase the age for full eligibility) and they want to grandfather in, that the funds will not be available when they need them (probably unlikely in the short term), or that aged individuals who want to work are being laid off or cannot find work, and are willing to accept reduced Social Security benefits in order to alleviate the problem. Either way, the economic climate has created a ripple effect that is being felt even by all.
For more information about Social Security, Contact Thomas O'Brien at Feiler & Associates.
Showing posts with label Benefits trust guarantee culture outcome poll. Show all posts
Showing posts with label Benefits trust guarantee culture outcome poll. Show all posts
Monday, August 9, 2010
Monday, July 12, 2010
An interesting comparison with a frustrating result...
I recently saw that a foundering yet wildly popular and informative commercial social bookmarking website owned by a large publishing house (Reddit.com owned by Conde Nast) was seeking support from its many users in order to continue as an ongoing interest. Though many derided this action as nothing more than a corporation trying to squeeze dollars from their fans, I think the response from the Reddit.com community stands for something else. As a result of a self-effacing and honest appeal, thousands of users rallied to the aid of the site, and some of the pressure is gone, at least for now (see http://blog.reddit.com/2010/07/it-was-triumph.html). The ultimate lesson? People will back an idea that should not need support if the communications are honest, and the product is of high quality.
I would draw a parallel between the situation faced by Reddit.com and that faced by Social Security. Social Security is a high quality idea, whose future is quite uncertain. Though reasonable minds disagree on when a benefits design change will occur, all projections state that within the first half of this century, serious changes must be made to allow Social Security to continue. Many serious bipartisan efforts are beginning to move the retirement age to 70 for those workers born in the 1960s and beyond.
As everyone knows, the backer of Social Security is the U.S. Government. A Pew Research Center survey whose results were released in April of 2010 demonstrated that a staggering 78% of Americans don't trust the federal government. Furthermore, retirement ages have already being extended, and those who are slated to receive benefits face ever increasing delays in receiving back benefits, all while those awaiting hearings face delays of a year or more before their cases may be heard. All of these factors combine to form a frustrating confluence of circumstances that do not have a positive outcome, unless the culture of the Social Security Administration, and the U.S. Government at large can change quickly, establish accountability, and ensure that younger Americans may be guaranteed that their non-optional contributions to this program will accrue not only to the benefit of others but to their benefit as well.
I would draw a parallel between the situation faced by Reddit.com and that faced by Social Security. Social Security is a high quality idea, whose future is quite uncertain. Though reasonable minds disagree on when a benefits design change will occur, all projections state that within the first half of this century, serious changes must be made to allow Social Security to continue. Many serious bipartisan efforts are beginning to move the retirement age to 70 for those workers born in the 1960s and beyond.
As everyone knows, the backer of Social Security is the U.S. Government. A Pew Research Center survey whose results were released in April of 2010 demonstrated that a staggering 78% of Americans don't trust the federal government. Furthermore, retirement ages have already being extended, and those who are slated to receive benefits face ever increasing delays in receiving back benefits, all while those awaiting hearings face delays of a year or more before their cases may be heard. All of these factors combine to form a frustrating confluence of circumstances that do not have a positive outcome, unless the culture of the Social Security Administration, and the U.S. Government at large can change quickly, establish accountability, and ensure that younger Americans may be guaranteed that their non-optional contributions to this program will accrue not only to the benefit of others but to their benefit as well.
- For more information, or to contact Thomas, visit Feiler & Associates online.
Subscribe to:
Posts (Atom)