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The current state of the Social Security system:

It shall be noted that the social security system is designed insuch a way that it helps the old aged & retired citizens tolive their remaining life with dignity. On referring to theGreenspan commission report, the accumulation of funds in thesocial security trust fund is increasing every year. The trust fundshowed surplus by end of Year 2017. However, there are risk thatthis fund would be depleted at a much faster rate due to changingdemographics such as higher rate of retirement of baby boomergenerations, increased longevity due to advancements in medicalscience & medical technology, increasing societal incomeinequality, extended period of monetary easing policy and less thaneffective governance to tackle risk to social security system.

There are issues reported due to falling worker-to-beneficiaryratio from 4 in Year 2000 to level of 2.8 worker per retiree in2017 and is expected to further fall to 2.2 by 2035

It shall be noted that payroll tax contributes 87% of socialsecurity funds. Due to falling workers to retiree ratio, there is arisk that social security funds accumulation would not keep pacewith its rate of depletion.

USA is witnessing 10000 baby boomers retiring every day onaverage. On longevity side, people are expected to live for next 20years beyond the age of 65 Years. This would mean, the retireeswould keep receiving social security payments for extended periodof time. Due to rising income equality, wealthier retirees coulddraw more social security payments and that too for extended periodof time. Monetary easing did not help social security funds to growat the faster rate due to low bond yields.

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The President of USA is expected to act tirelessly to eliminatethe risks that is looming over the social security system due toissues stated above. Followings are the possible recommendationsfor considerations:

1) Policy should be framed to focus on people from Millennialsand Gen X to diversify investments in tax-advantaged investmentvehicle and reduce dependence on social security postretirement

2) The President should advise Federal reserves to restrict theeffect of monetary easing on bond yields

3) The President should make the taxation policy increasinglyprogressive so that wealthier are taxed at much higher rate thanrelatively less fortunate.

4) The President should gradually increase the full retirementage to 68 to 70 years, given increasing longevity

5) The President should pass a rule that calls for review of theamount drawn as a part of social security payments once every fiveyears as retirees remain alive in multiple of 5 years term postretirement.