For the Social Security Act was created in to law by President Franklin D. Roosevelt in 1935. (History.com) The Social Security Act includes a seniority benefits program, unemployment protection, medical coverage for those in economic stress, economic assistance for widows and their children, and monetary assistance for incapacitated individuals. The overall purpose for Social Security was to assist the disadvantage Americans financially through the idea of “social insurance.” The creation of Social Security came with many challenges and several solutions. Today the issues of Social Security still remain and politically it is not a central concern.

According to the Social Security
Administration for 2017, approximately 67 million Americans receive benefits
from programs managed by the Social Security Administration. For the public Social
Security is highly accepted. The acceptance of Social Security only brings
about policy concerns for not only legislators but the public as well. These
policy concerns have progressed slowly due to political ties to such programs
within Social Security. Today the policy concerns related to Social Security are
so evident that fundamental reform is necessary.

The first policy concern related to Social
Security is the retirement test. The retirement test is a tax of $1 for every
$2 earned for one who applied early for Social Security. (Peters 302) According
to AARP, in order to take the retirement test, you must be the age of 62. To
reap full benefits of Social Security, one must apply within the normal
retirement age of 65. The retirement test was created in hopes of protecting individuals
that were too old to work compared to those that could. The idea that Social
Security is based off the principle of a “social insurance” stressed the need
for a retirement test. Over the years legislators have voiced reasons why the
retirement test should be removed. The first is the conceived notion of Social
Security as a means-tested benefit rather than a social insurance. (Peters 302)
For retirees that want to gradually move out the work force are punished for
accessing their Social Security funds early. If the retirement test is
eliminated then the penalty applied for accessing funds early would be
non-existent. Another reason why the retirement test needs to be removed is the
life expectancy for Americans has increased. The retirement age to receive full
benefits from Social Security is 65. Today many Americans of the age of 65 are
still able work. If the retirement test is removed many Americans would be able
to work without paying the penalty aiding both the labor force and retiree. The
retiree will then not suffer much of an economic burden.

A second policy concern associated with
Social Security is the fixed retirement age. According to Gallup the average
retirement age is 62. By lowering the retirement age many Americans will
benefit from both retirement income and Social Security in good health. For
many Americans would rather retire early to enjoy retirement. On the contrary, according
to The Motley Fool, the Republican party strongly suggests in raising the
retirement age. (They suggest raising the age between 68-70.) By raising the
retirement age of receiving full benefits, program costs will be reduced and
Americans would not depend on the program as long.  According to Brookings.edu by raising the
retirement age would aid the funding problem related to the Social Security
program. Currently the Social Security program has been overhauled due to the
financing gap that first began in 1983. (Brookings) By raising the retirement
age would increase promised benefits and begin to close that gap.

The third policy concern is Social Security
in relation to the economy. Social Security has a substantial effect on the
economy. For many Americans do not save much for retirement due to being
financed through Social Security. Social Security does not accrue in a large
amount over time giving the U.S. economy less capital within accumulation. (Peters
306) By Americans not saving more for retirement creates a loss within the
Social Security program. According to PBS, for the next 75 years Social
Security is expected to pay out $159 trillion in benefits which is more than it
will collect in taxes. This effect is due to the unequal ratio of the beneficiary-to-worker.
(Comparing those who are benefiting from Social Security to workers paying into
the system.) A solution to aid in Social Security in relation to the economy, would
be encouraging Americans to save more. By Americans saving more for retirement
Social Security could be relieved of exhausting its benefits. Another solution
in aiding to Social Security within the economy is making sure Americans are
well informed about the Social Security program. By strengthening public
understanding establishes a strategic plan for recipients. According to the
Center on Budget and Policy Priorities, another solution would be having the
government enforcing employer-sponsored programs such as health insurance. This
will be able to cut back spending for programs such as Medicaid and Medicare.
By doing this more individuals would have access to other Social Security
benefits and can also begin to erode the solvency gap. According to the Social
Security Administration in 2010, President Obama focused on Social Security
reform on the context of the federal budget. He proposed the creation of the
National Commission on Fiscal Responsibility and Reform. This commission was in
charge of reviewing the federal budget while also focusing on Social Security
and other entitlement programs. Today the nonpartisan commission continues to
make outreach efforts within Washington. A major policy improvement they have
focused on was the McCrery-Pomeroy SSDI Solutions Initiative. This initiative
focused on changes related to Social Security Disability Insurance. The
National Commission on Fiscal Responsibility and Reform continues to push the
current administration on creating a plan to cut back on Social Security
spending.

The final policy concern is financing
Social Security. In relation to the U.S. economy, the overall concern for
Social Security, is how will the program financially maintain benefits to
individuals who have paid into it. According to the Social Security
Administration, approximately 50% of Americans depend on Social Security for
their income. Social Security remains an essential component for household
income. Currently Social Security is financed mainly through payroll taxes. It
is projected by the Center on Budget and Policy Priorities that by 2034 trust
funds within Social Security will be exhausted. This is due to the distortion
of workers and those receiving benefits from the program. A solution professed
by the democratic party, for financing Social Security, would be raising
additional revenue. According to The Motley Fool their plan is to either
eradicate or increase taxes through payroll. By eradicating the payroll tax
will eliminate Social Security but by increasing the payroll tax will begin to
save the program. According to the Social Security Administration the current
tax rate is 12.4%. (half is paid by employer while the other half is paid by
employee.)  If the payroll tax is increased
this will begin to close the solvency gap. This will also help in providing
continued benefits for individuals who already paid in to the program.

The likelihood of success of such proposals
on Social Security reform is very slim. According to Investopedia a few changes
are expected in 2019 but overall within the program changes are still
non-existent. The tax cap will remain the same at 6.2%. The full retirement age
will set to increase only by six months. (66 and six months) For individuals who
continue to work, while receiving Social Security benefits, that have not hit
the full retirement age, will have a limit of $1 for every $3 earned. The
threshold for Social Security will increase by $70 for individuals that are
blind and $40 for the non-blind. The last minor change is Social Security
recipients now have access to view their COLA (Cost of Living Adjustment)
notice online.

Overall it is very clear that the Social
Security program is in need of some type of reform. It seems the current placement
of a few Social Security policies are extremely outdated. Policies centered
around the retirement test, retirement age, the economy, and financing within
the program have created challenges for both recipients. It seems the current
administration seems to be unfocused about Social Security reform. The sooner
Social Security reform becomes in effect the better outcome for longevity for
the program will be. So many Americans rely on Social Security, with the
creation of reform can help ensure that recipients will continue to receive
desired benefits.

Work Cited

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• Peters, B. Guy. “Social Security and Welfare.” American Public Policy: Promise and Performance, 10th ed., SAGE, 2016, pp. 296–330.
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•          Williams, Sean. “When It Comes to Social Security, Republicans and Democrats Agree on Only 1 Thing.” The Motley Fool, The Motley Fool, 16 Dec. 2017.