The Social Security Act

        The Social Security Act was signed into law by President Roosevelt on August 14, 1935. In addition to several provisions for general welfare, the new Act created social insurance program designed to pay retired workers age 65 or older a continuing income after retirement. We currently pay out more than $73.5 billion a month to nearly 60 million Americans. I used the nerd wallet retirement calculator to calculate my retirement savings. I will need about $3,643/month in retirement. Yes, Social Security should be a means-tested benefit because it would reduce benefits for higher-income recipients and could even eliminate benefits altogether for the highest-income households. Unlike the reform option to reduce benefits for higher earners, which uses a measure of career average earnings to reduce benefits, means testing would reduce benefits based on the full range of current income. I believe a majority of U.S. citizens would support raising the retirement age. Proponents of this solution point out that life expectancies have grown, meaning that beneficiaries receive benefits for longer and can and should also work longer. Raising the eligibility age for full benefits is a solution that makes logical sense, but could mean hardship for some. Also, privatizing social security because it would allow workers to control their own retirement funds through personal investment accounts. Proponents of privatization say that workers should have the freedom to control their own retirement investments, that private accounts will give retirees higher returns than the current system can offer, and that privatization may help to restore the system’s solvency. Opponents of privatization say retirees could lose their benefits in a stock market downturn, that many individuals lack the knowledge to make wise investment decisions, and that privatization does nothing to address the program’s approaching insolvency.

Sources:

http://www.fool.com/retirement/general/2015/01/17/the-average-american-gets-social-security-compare.aspx 

http://socialsecurity.procon.org/