Social security has little public confidence

In crisis?

A new Gallup poll has shown that public confidence in the country's retirement program is at its lowest since the group started polling in 1990.

According to the study, six in 10 working Americans believe they will get no Social Security benefits when they retire, while 56 percent of retirees think their Social Security benefits will be cut.

However it is not the country's older workers that are the most concerned, but those aged from 18-34 years old with 76 percent thinking they will never see a Social Security check.

So why the increase in pessimism amongst the American populous, especially among the younger generations? According to Gallup, the two deciding factors is the impending retirement of the baby boomer generation, the largest generation in American history, and the recession which has destroyed the traditional views of savings and retirement.

Government action

To make matters worse, attempts by the government to assuage fears have been met with hostility, especially with plans such as raising the retirement ages, increasing Social Security taxes or reducing benefits.

Another government and Congress solution that has been discussed is to increase the ‘base wage' cap, that has been gradually increasing over the years. In 2000, workers did not pay Social Security taxes on earnings over $76,000, and in 2010, that cap is $106,000.

While Social Security is only a small addition to any citizen's income, many see it as a critical piece of their retirement. It is interesting to note that this year, on 14 August, will be the 75th anniversary of President Franklin Roosevelt signing the program into law, making him the first president to advocate the protection of the elderly.

Created in the aftermath of the Great Depression, the Social Security program was designed to implement ‘social insurance' when poverty rates among senior citizens exceeded 50 percent. It was revolutionary at the time and considered one of America's greatest programs, however without a solution to the baby boomer retirement crisis finalized, the government is going to have to work hard to restore public confidence in Roosevelt's critical system.

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