Social Security in Retirement
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In the United States of America, there is a group of retired workers who are referred to as the old age survivors, which were the first name given to the program by two organizations namely; social security Administration and the Disability insurance program. The two organizations’ were formed so as they could urge people join in creating a huge pool of funds which they could enjoy in shares during their retirement period (Feldstein, Liebman, 2002).
In order for one to qualify for the program, payments should have been made from his or her earnings during the working period, so that the money becomes useful only in the retirement period. This program helped most of the Americans who are not in a better position to save for future. The benefits of this program are based on the amount of taxes that the payee was being deducted from the pay, thus the share of the capital is equated from the total funds drawn from the salary during working time (Diamond, 2004). As the program grew bigger, most of the Americans lost hope in it due to fear of early deaths which meant no payment of the funds after a long period of being taxed. The program was suited in a way that it only favored the member once he/she retires and a fine sum of funds in the pool of funds.
References
Diamond, P. (2004). Social security. American Economic Review, 94(1), 1-24.
Feldstein, M., & Liebman, J. B. (2002). Social security. Handbook of public economics, 4, 2245-2324.
