Social Security
When you hear the term “social security” which issues immediately come to mind? Do you sometimes wonder what state your social security system will be in when you're ready to retire or if you lose your job unexpectedly? How will you pay your bills, support yourself or cope if you fall ill and are unable to provide for your family?
These and other similar questions are what a social security system is designed to address. Social security was established to help retired, elderly, poor, and disabled people. More recently, it has expanded to include low income families, and individuals in specific ethnic groups who meet established criteria. While most people tend to think of retired people when they think of social security, the scheme in fact operates as a form of insurance for virtually anyone that needs it. War veterans and the surviving spouses and children of deceased income earners are two types of people that are entitled to financial support from social security.
The amount of money a government spends on social security is determined by how many people qualify for support. If you are employed, a certain percentage of your wage or salary is paid into the social security system. By making these contributions, you are eligible to receive support from the system when you are no longer capable of working.
You may have heard talk of the social security system being in trouble. This is due to the increased spending the government is tasked with to fund the system. The numbers of retired people that rely on the system to assist them with their day to day lives is increasing, due to the longer life expectancy people have nowadays. The problem is so serious that many predict there will be more retired people requiring support than there will be people earning wages and salaries. For this reason, new ways to fund the social security system need to be found to prevent compulsory contributions increasing dramatically.
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