Insurance

America’s Social Security System

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America’s Social Security System. Social security means being sure of the future. Social security system is a system that meets the needs of people in various social risks. In a sense, the social security system is a contract made between generations. We have stated in previous articles that there are 2 main social security systems in Canada as “Canada Pension Plan” and “Old Age Security” and explained in general.

The first country that comes to mind when talking about Canada is America. It is the country whose neighbor and relations are the most intense in every respect. Relationships are also advanced in terms of social security.

Just as there are many American citizens working in Canada, there are many Canadian citizens working in America. Again, many people have work in both Canada and America.

In this article, we will try to explain the current social security system in America.

In the United States, 6.2% of the earnings of employees up to $ 97.500 (usd) are deducted as insurance premium and 1.45% as health premium. Those who work in their own business; They pay the sum of both employee and employer premium rates (12.4% + 2.9%).

Those who are insured in the USA can retire at the age of 65, or if they are willing to receive a missing salary, they can receive a pension at the age of 62.

If you do not have legal immigration or citizenship status in America, you cannot obtain a social security number. When you do not get a social security number, you cannot get a work permit. Therefore, you cannot work with official insurance with check.

Some states grant work permits to international students, some do not.

If Canadian citizens work in America, American employers can get a work permit for Canadian workers.

Those who do not have a social security number and cannot obtain a work permit have to work in uninsured jobs.

Millions of people who live in the United States and do not have legal status, cannot obtain a social security number and do not have a work permit have been working uninsured and informally for years. Therefore, it causes the premium-income loss of the American social security system.

According to 2006 figures, there are 37 million Americans aged 65 and over.

If this goes on, it is estimated that by 2040 the number of American citizens over 65 will double, there will be 70-75 million people. Thus, the number of retirees will double at approximately the same rate.

This situation; That risk undermining the social security system, measures are not taken, the system will go bankrupt if the insurance system strengthened in the future (as in Turkey) will fall in income can not cover the expenses.

The American and European countries, whose elderly population is growing rapidly and whose young population is decreasing, will face major social and economic problems in the future if they do not take measures.

Although delaying retirement by making retirement conditions difficult provides benefits and relief in the short term, it is never a definitive and permanent solution.

The definitive, permanent and healthy solution is to grow the economy, open new business areas, increase the number of employees, and reduce unemployment.

In summary, while increasing the number of working young generations, equally more importantly is to ensure that they work as officially insured, to prevent unregistered work, thus to include employees in the social security system and receive premium.

Some of my readers may think, “ we are from Canada, what to us from America“.

I remind those who think like this how Canada has been negatively affected by the economic fluctuations and crises in America in recent years and I am content with the determination of a Canadian friend. “ Canada will have a cold if America sneezes ”

Those who work in America can request their service documents by calling the “ social security statement ” 1-800 772 1213, 1-800 633 4227, 1-877 486 2048.

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