Introduction
Today, there are numerous social problems experienced in society. One of the social problems people experience is the high poverty rate among seniors age 65 and over. Currently, there are still millions of elderly who are living below the poverty line (Karger & Stoesz, 2018). To solve this problem, US politicians are integral in creating and improving policies such as social security. The policy has managed to ensure that the elderly get a stable and progressive income after retirement (Ahmed et al., 2018). However, it has failed to make sure that the help is adequate to meet the essential needs of the elderly such as healthcare. Therefore, social security policy was developed to eliminate poverty among seniors age 65 and above.
The Core of the Social Problem
The social problem is the high poverty rate among older people aged 65 and above. Currently, about 3 million seniors age and beyond are living below the poverty line (US Census Bureau, 2021). However, the number is high among women, minority groups, and individuals living alone. The elderly struggle with inadequate social security assistance and the heavy financial burden of healthcare expenses. Since the population are out of employment, they usually find themselves unable to pay their bills. The US politicians constructed the problem to address the needs of the people (Karger & Stoesz, 2018). They are using the updates provided by the bureau to show whether the number is reducing or increasing. Therefore, the high poverty rate among seniors is a social problem defined by data obtained from the bureau.
The history of the social problem is based on the change in the number of people living below established poverty lines. According to Richardson (2019), the number of elderly people 65 and above living in poverty has declined since 1960s. In 1959, the poverty rate for people aged 65 and beyond was 35.2 %, making them the age group most vulnerable to poverty. However, the poverty rate for those aged 65 and over in 2019 and 2020 was 9.0 % and 8.9 %, respectively (Shrider et al., 2021, p.13). Although the number has been declining, it is high because millions of the elderly 65 years and above are still poor. The social problem is one issue that affects the elderly and dates back to the 19th century.
The US politicians have owned the problem by stating that it can be addressed by creating the right policies. Democrats prefer greater taxes and larger government to address the nation’s domestic issues, such as helping the poor and increasing economic mobility (Richardson, 2019). On the other hand, the Republicans favor fewer taxes, less government, and more personal and civic responsibility to address poverty and opportunity. They define the high poverty rate of elderly 65 years and above as a serious problem that should be solved (Richardson, 2019). Therefore, politicians’ ideologies have played a major role in creating policies to help solve the problem of the high poverty rate among seniors of age 65 years and above.
Federal Social Policy
The social security policy was created to respond to the problem of the high poverty rate among older adults 65 years and above. It is a federal program in the US that offers retirement benefits and disability income to qualified individuals. The social security policy and policy response are a creation of US politicians to end poverty among the elderly (Karger & Stoesz, 2018). Political conditions such as political constraints and ideological preferences drove the policymakers to respond to the problem. The alternative policies to the social policy created to solve the problem were the retirement policy program, the American Recovery and Reinvestment Act, and increasing workers’ minimum wage. Politicians developed the policy to improve the lives of the elderly in society.
Description of The Social Security Policy
Social security policy is one of the government’s most successful and effective programs. It was established to provide universal welfare by establishing a federal old-age benefits system (Ahmed et al., 2018). The program is managed by the Social Security Administration (SSA), a federal government department. The program is funded by a payroll tax in which each employee and employer pay 6.2% of wages up to a taxable limit of $142,800, while self-employed pay approximately 12.4% (Singh, 2021, p.40). To be eligible for Social Security retirement benefits, a person must be at least 62 years old and have paid into the system for at least ten years. A beneficiary can get about $1,500 every month from a program. The policy is among the greatest achievement of the US government because it plays an integral role in eradicating poverty among the elderly.
The Effectiveness of the Policy in Addressing the Problem
The policy has managed to reduce the number of elderly 65 years and above from deep poverty. Based on the number of families served as well as the average amount paid out to participants, the social Security policy is by far the largest government transfer program (Ahmed et al., 2018). About 65% of the money distributed by the program goes to those who would be considered impoverished if the transfer payment did not exist. The majority of program beneficiaries are retired workers, 14% are disabled workers, and 17% are survivors of deceased workers or spouses and children of retired workers (Ahmed et al., 2018, p.318). Therefore, the policy has ensured that the elderly is the majority of the benefits paid.
Social Security redistributes income from those who have earned more over their lifetimes to those who have earned less. It was developed to provide appropriate retirement income for the elderly (Ahmed et al., 2018). Less evident is how the various elements of Social Security interact to produce redistribution. It redistributes income from affluent to poorer workers via a progressive benefit formula that delivers higher returns on the first dollar of worker earnings and lower returns on the last dollar of worker earnings (Ahmed et al., 2018). As a result, the social security policy ensures that beneficiaries are paid progressively. An individual is eligible for a steady income even after retirement.
The Failures of the Social Security Policy
Social security assistance is inadequate for the elderly due to changing economic situations. The high cost of living in the US is one of the contributing factors to the program’s inadequacy (Shipunova, 2019). Most elders find the help integral but not sufficient to sustain their bills. Moreover, due to their age, they are susceptible to a number of health problems that require attention and proper funding. For example, when the elderly gets sick, they are more likely to spend most of their income to pay for healthcare. The situation is even worse for those living alone because they are enrolled in long-term care when they become sick, which is expensive (Shipunova, 2019). Therefore, the social security policy has failed to consider the economic situations and provide assistance that meets the beneficiaries’ needs.
Social security policy has contributed to the issue of inequality, especially on gender and ethnicity. The policy intended to assist the elderly 65 and over regardless of their age and ethnic groups (Shipunova, 2019). Even with the deployment of the social security program, more elderly women live below the poverty line compared to men. In addition, the number of elderly people from minority groups who are poor is higher than the majority group. Based on this, the policy has failed to consider the aspect of gender and minority groups in their equation for the beneficiaries. For example, the unemployment rate is high among the minority groups in the US compared to the majority group (Shipunova, 2019). As a result, minority groups such as people of color are less likely to qualify for social security assistance.
Conclusion
Social security policy has significantly helped in reducing poverty among the elderly. One of the social issues that individuals face is the high poverty percentage among seniors aged 65 and up. Currently, millions of older people are living below the poverty level. US policymakers are actively developing and upgrading legislation such as social security to address this issue. The policy has successfully ensured that the elderly receive a consistent and progressive income. As a result, the elderly in the US have managed to afford some of their essential needs such as housing, food, clothing, and healthcare. Therefore, the policy has effectively managed to take some elders out of poverty after retirement through a steady income.
References
Ahmed, J., Barber, B. M., & Odean, T. (2018). Made poorer by choice: Worker outcomes in social security vs private retirement accounts. Journal of Banking & Finance, 92, 311-322. Web.
Karger, H. J., & Stoesz, D. (2018). American social welfare policy: A pluralist approach (8th ed.). Pearson.
Richardson, J. H. (2019). Economic and financial aspects of social security. University of Toronto Press.
Shipunova, T. V. (2019). Social security of aging: problem statement. Advances in Gerontology, 9(1), 42-47. Web.
Shrider, E. A., Kollar, M., Chen, F., & Semega, J. (2021). Income and poverty in the United States: 2020. Current Population Reports. US Census Bureau. Web.
Singh, S. S. (2021). A Proposal for Refinancing the Social Security Retirement Insurance Program to Ensure Longevity [Unpublished capstone project]. Johns Hopkins University.
US Census Bureau. (2021). Income and Poverty in the United States: 2019. Census.Gov. Web.