by Ian Loft

Created on: January 12, 2008

Social Security is an invention of the modern world that provides a safety net in which all members of society can manage to survive without going hungry. An envy of third world nations, the system of Social Security helped make many of the successful Western democracies what they are today yet with the increase of special interest groups, lobby groups and weak politicians that care only to retain their seat of power and privileges the Social Security system is being abused in many ways. The casualties of this abuse are the elderly that worked their entire lives, paid taxes and are left with little for their contribution to society.

To correct this inequity the system needs some serious reform and the working aged population require an attitude adjustment. A creeping ideology of the world owes me a living' is taking from those who need the most help. Entitlement is the buzzword thrown around and everybody wants his or her cut. At the end of this chain of greed are those ready to retire and it is they who paid the taxes our government so freely give away to the loudest protest groups hoping to curry favour and a few votes. Nothing is likely to change the colour of weak and self-serving politicians; this leaves only one possible option, which is to set up a system through which retirees can be looked after in reasonable comfort.

Australia introduced a system of mandatory superannuation into which all workers pay a contribution throughout their entire working life. The government contributes from taxes at a varying percentage depending on the type of fund and conditions of employment so that on retirement there is a specific pool of funds that continue to support the workers.

This system was initially part of government employment however in the late 1980's it became clear that a crisis was rapidly approaching where the baby boomers would en-mass be leaving the workforce and this would be a significant cost to consolidated revenue tax base. To overcome this a system of superannuation was mandated whereby all employers were to invest part of their employee's wages into approved funds, and the government would contribute its share. The aim of this new system is to ensure that government funded aged pensions were not overloaded and in time it is hoped that all workers become self-funded retirees. In this way Social Security can do its work and support people who are incapable of working such as the sick, the physically and intellectually impaired or any other genuinely disadvantaged people in our society.

Social Security cannot stand the pressure of an aging population and without changes that mandate a certain level of retirement savings the tax dollar will never go far enough. Too many greedy hands are looking for free handouts yet many are perfectly able to work and save for their own retirement. Our aged population deserve better because it was they who contributed to everything we enjoy today from basic infrastructure to modern technology. It would be a poor way of showing our gratitude if we were not to do our best and ensure our elderly are looked after for the days they have remaining to enjoy their lives.

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