Learning More about Social Security
Social security is a form of service, usually provided by the government, where its main object is to aid and protect families and individuals from various problems related to social conditions. This type of service is also provided by non-government and non-profit organizations although their scope is often very limited because of their financial capability and focus.
Through social security, citizens under the government will be protected and aided on some of the conditions:
- Old age
- Poverty
- Disability
- Unemployment
The government and other organizations usually create specific programs for social security. These specific programs were created to deal with various concerns related to social problems and to properly set-up guidelines for fraud prevention.
Types of Social Security
Social Insurance
The set-up of this type of social security is pretty simple since people receive benefits as long as they provide contributions. People at work are not only working to earn their entitled salary but they are also working to receive the financial benefits they have received from the government. The contributions provided through social security are also used for other social services. This type of setting is ideal in highly developed countries since many people are employed. Unfortunately, the setting leaves out a lot of unemployed individuals who are out of work not because of negligence.
Means Tested Benefits
This type of social security was set-up to aid individuals and small businesses. To qualify for this type of assistance, an individual should be on low-income. The benefit can be extended to businesses that are low in income and families with lesser assets. Through this social security, small businesses and individuals are assured of financial assistance. But tested benefits have been criticized because the establishing a system and determining who can receive the said benefit is very challenging. Even monitoring of businesses and individuals’ improvement at work or business is even harder.
Non-Contributory Benefits
Through this social security, individuals will be provided with assistance not because of poverty or work but through their physical standing. Those with disabilities should qualify to this type of social security. This is very popular in highly developed countries as they can easily provide financial assistance to those with physical disabilities. Although working with disabilities can provide benefits and fraud is less likely, there could be some loopholes in the policy. This is especially true when there are no rules that specify who would be classified as disabled or where the disable status starts.
Universal Benefits
This type of social security can be likened to non-contributory benefit. However, this type of benefits is geared for adults at the pensioner’s age and kids. This type of social service ensures that those who are unable to earn or work with enough pay will be provided with assistance. Although this sounds like a fraud-proof program, those who oppose to this type of assistance pointed out the possibility that those who are still young will simply rely on social services instead of working.
Discretionary Benefits
This refers to the social services offered to individuals who could not be covered by services already indicated.
Social Protection and Social Security
Social security should not be misunderstood as social protection. While the former has been extensively explained, social protection requires additional understanding on its purpose. In gist, social protection is the type of service offered by non-government organizations, individuals, government or the combination of the three. While social security is offered for everyone who can qualify, social protection is offered for limited individuals and communities. The reason for this is often financial as non-government organizations only have limited resources on what they can do and who they can help.
While the obvious disadvantage is based on financial support, social protection is providing great services for those who can receive assistance. Non-government organizations are also keen in getting their services across borders which means there is no limitation or discrimination.
Implementation of Social Security
Cash Transfer
This is one of the most basic social security offered by the government. Through cash transfers, individuals under the specific program will be aided through cash by the government. This is very simple because money is offered as assistance. Recipients are free to do what they would like to do with the assistance they receive. This program is very simple for the government but it could have devastating results. Since recipients are provided with financial aid, they could end up spending the money other than food or paying for the bills.
Health Care
Through health care, individuals will receive medical assistance from the government. The usual setting is that government set-up hospitals and clinics where individuals can receive free health care and additional medical services. This topic has been controversial in the past few years in the US but this system is already implemented in many countries such as Canada, England and France.
Pension and Child Benefits
Pension is considered one of the most stable forms of social security. Those who have worked for many years in various industries are assured of some sort of financial reward through their pension. The ability to receive pension is based on their contribution in the past leading to their day of retirement.
Through social security, the government can offer different types of assistance to those who do not have the financial capability to support themselves. While this is a big challenge, governments are assisted by other non-government organizations or even individuals who wanted to share their wealth to others.