Posts
There has been a lot of press lately regarding the financial health of the Social Security Administration. On May 31st, 2013, SSA issued a press release stating that the combined assets of the Old-Age and Survivors Insurance, and Disability Insurance Trust Funds are projected to become depleted in 2033, with 77 percent of benefits still payable at that time. The Disability Insurance Trust Fund will become depleted in 2016, with 80 percent of benefits still payable.
Obviously this is worrisome to just about all of us – those of us currently collecting benefits and dependent on that income, as well as those of us who may need to rely on receiving some type of benefit in the future.
Polls have been conducted throughout the general populous to get an idea of what Americans think of the SSA’s current financial state and what should be done about it. Selzer & Company conducted the Bloomberg National Poll between February 15th and 18th of 2013 and asked 1,003 adults several questions pertaining to what they thought about the current health of SSA. One question asks, “How certain are you that Social Security will be there if you need it in retirement?” The Americans polled were almost 50/50 on this one: 39% of people polled said SSA will probably be there, while 30% responded it probably won’t be there. A smaller percentage of Americans responded that it will definitely be there – 15% - while a similar number of Americans said SSA will definitely not be there – 13%. A small percentage – 3% - remained unsure.
Interestingly, even though most Americans polled believed SSA would either probably or definitely be there when they needed it; most Americans polled also believed a major overhaul would be necessary to reduce the deficit the agency faces. While 39% of Americans polled stated that it was not necessary, 51% felt it was needed while 10% remained unsure.
Another question asks, “Do you favor or oppose reducing the cost-of-living adjustment that automatically increases the amount of benefits Social Security pays out to help the program remain financially secure?” Americans polled responded with an overwhelming 64% that they would favor this reduction.
With the new data that was released in May, it would be interesting to know whether the opinions of those polled have changed. One factor that is not disclosed in this poll, and would be interesting to note, is whether any of these Americans polled are already receiving benefits? A dependence on the income Social Security provides would surely color the opinion of a person giving these answers. A major overhaul may be warranted, and the cost-of-living increase may require some adjusting, but at what cost? In 2012, an estimated 57 million people received over $775 billion dollars of benefits. That’s a lot of people and a lot of money. It may be enough for some to live comfortably, but not nearly enough for others to scrape by. According to ssa.gov, the average monthly benefit is $1,269.00.
It begs the question of who would be affected by what choice? If a major overhaul is executed, will anyone suffer? On the other hand, if it is not done, will the suffering come down on us all? This problem could potentially be avoided by moving funds from the Old-Age and Survivors Insurance fund to the Disability Insurance Trust fund. SSA has done this many times in the past as the amount of disabled workers vs. retired workers has waxed and waned. If Congress has known that this problem was approaching, why wouldn’t they take this proactive step? Without this transfer, only 80% of benefits will be payable to disability recipients. With many disabled people already on tight budgets, how will this decrease affect them?
This is an important question the decision-makers at SSA must strongly consider for the well-being of this country and its people. Thousands of people – our friends, family member and coworkers - have been saved from destitute poverty and even death by the receipt of much-needed Social Security benefits. Let us, as the American people, who either now depend or may come to depend on programs such as these, continue to let our voices be heard so the choice that is made is in the best interest of us all.
Obviously this is worrisome to just about all of us – those of us currently collecting benefits and dependent on that income, as well as those of us who may need to rely on receiving some type of benefit in the future.
Polls have been conducted throughout the general populous to get an idea of what Americans think of the SSA’s current financial state and what should be done about it. Selzer & Company conducted the Bloomberg National Poll between February 15th and 18th of 2013 and asked 1,003 adults several questions pertaining to what they thought about the current health of SSA. One question asks, “How certain are you that Social Security will be there if you need it in retirement?” The Americans polled were almost 50/50 on this one: 39% of people polled said SSA will probably be there, while 30% responded it probably won’t be there. A smaller percentage of Americans responded that it will definitely be there – 15% - while a similar number of Americans said SSA will definitely not be there – 13%. A small percentage – 3% - remained unsure.
Interestingly, even though most Americans polled believed SSA would either probably or definitely be there when they needed it; most Americans polled also believed a major overhaul would be necessary to reduce the deficit the agency faces. While 39% of Americans polled stated that it was not necessary, 51% felt it was needed while 10% remained unsure.
Another question asks, “Do you favor or oppose reducing the cost-of-living adjustment that automatically increases the amount of benefits Social Security pays out to help the program remain financially secure?” Americans polled responded with an overwhelming 64% that they would favor this reduction.
With the new data that was released in May, it would be interesting to know whether the opinions of those polled have changed. One factor that is not disclosed in this poll, and would be interesting to note, is whether any of these Americans polled are already receiving benefits? A dependence on the income Social Security provides would surely color the opinion of a person giving these answers. A major overhaul may be warranted, and the cost-of-living increase may require some adjusting, but at what cost? In 2012, an estimated 57 million people received over $775 billion dollars of benefits. That’s a lot of people and a lot of money. It may be enough for some to live comfortably, but not nearly enough for others to scrape by. According to ssa.gov, the average monthly benefit is $1,269.00.
It begs the question of who would be affected by what choice? If a major overhaul is executed, will anyone suffer? On the other hand, if it is not done, will the suffering come down on us all? This problem could potentially be avoided by moving funds from the Old-Age and Survivors Insurance fund to the Disability Insurance Trust fund. SSA has done this many times in the past as the amount of disabled workers vs. retired workers has waxed and waned. If Congress has known that this problem was approaching, why wouldn’t they take this proactive step? Without this transfer, only 80% of benefits will be payable to disability recipients. With many disabled people already on tight budgets, how will this decrease affect them?
This is an important question the decision-makers at SSA must strongly consider for the well-being of this country and its people. Thousands of people – our friends, family member and coworkers - have been saved from destitute poverty and even death by the receipt of much-needed Social Security benefits. Let us, as the American people, who either now depend or may come to depend on programs such as these, continue to let our voices be heard so the choice that is made is in the best interest of us all.
Written by Anna Westfall & edited by Attorney Andrew November
Need someone on your side during these troubling times? Chances are we are right around the corner from where you live. We have offices in Akron, Canton, Youngstown, Toledo, Mentor, Lorain and Ashtabula for your convenience. Click HERE for more information!
No comments :
Post a Comment