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When Is the Social Security Asset Fund Running Out?
Statista ^ | 09/04/2021 | Katharina Buchholz

Posted on 09/05/2021 6:35:51 PM PDT by SeekAndFind

A social safety net is synonymous with a failsafe for many, but, as Statista's Katharina Buchholz notes, in the case of the U.S. Social Security system, additional action is needed to ensure it stays that way.

The annual OASDI trustees report by the Social Security Administration, covering old-age, survivors and disability insurance, shows that under the present circumstances, the asset reserve dedicated to the benefit program could be depleted sooner rather than later. Under the report’s intermediate scenario, asset funds would run out sometime in 2034, while this could happen as soon as 2031 if the administration was to shoulder a high volume of costs in the upcoming years. Under the low-cost scenario, the fund could remain solvent until 2052 or even longer, depending on the calculation. The intermediate date moved forward by one year since last year’s report as the COVID-19 pandemic seriously diminished Social Security’s income in payroll taxes.

The system’s expenditures have been above its income for some time – with the difference being taken out of the asset fund and the interest it creates - but the gap has been widening over the years. While in the early 1980s, summarized OASHI costs only exceeded incomes by around 15 percent, that gap grew to almost 26 percent in 2021. As Baby Boomers retire and Americans are having fewer children, the balance between those who are working and funding social security and those who are receiving old age, survivor or disability benefits continues to tip. 2021 marked the first year when interest earned on the fund could no longer bridge social security’s spending gap, sending the asset reserve into a downward spiral.

Infographic: When Is the Social Security Asset Fund Running Out? | Statista

You will find more infographics at Statista

Because Social Security services are funded by the payroll tax on a pay-as-you-go basis, the income-cost gap equals the amount the administration would no longer be able to pay out if the fund would in fact be depleted. In order to stop funds from running low, Congress would have to act to provide additional revenue to Social Security, for example by raising the dedicated payroll tax, to lower its cost by cutting benefits or attempt a combination of both.


TOPICS: Business/Economy; Society
KEYWORDS: assetfund; bankruptcy; funding; socialsecurity
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1 posted on 09/05/2021 6:35:51 PM PDT by SeekAndFind
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To: SeekAndFind

They can borrow and spend trillions at will. I don’t see the problem.


2 posted on 09/05/2021 6:40:18 PM PDT by NWFree (Somebody has to say it)
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To: SeekAndFind

This ponzi scheme was broke long ago. The “lockbox” is filled with iou’s


3 posted on 09/05/2021 6:41:35 PM PDT by patriot torch (Ashlie Babbitt-say her name)
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To: SeekAndFind

It helps if more people work rather than being on unemployment.


4 posted on 09/05/2021 6:43:52 PM PDT by Parmy
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To: SeekAndFind

We all know what has to be done to balance the income and expenses of Social Security.

1. Raise taxes
2. Reduce benefits, especially for people with other retirement income.

3. Raise the retirement age to qualify for full benefits.

ANY plan to fix Social Security will have some combination of these changes to the program.


5 posted on 09/05/2021 6:44:59 PM PDT by Dilbert San Diego
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To: SeekAndFind

Adorable that they act like it is self-funding.


6 posted on 09/05/2021 6:45:39 PM PDT by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up....)
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To: SeekAndFind

Every 25 years Congress fixes the Social Security system for the next hundred years. It is rather broken beyond repair, like a 50 year old dishwasher.


7 posted on 09/05/2021 6:46:20 PM PDT by Honest Nigerian
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To: patriot torch

Yes. All they have to do is vote something else in, before they get caught. Just like Medicare - the Afordable Retirement Act, or some such nonsense.

The Federal Government would make Al Capone blush.


8 posted on 09/05/2021 6:47:00 PM PDT by Empire_of_Liberty
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To: Dilbert San Diego
1. Raise taxes 2. Reduce benefits, especially for people with other retirement income. 3. Raise the retirement age to qualify for full benefits.

I predict they will probably do a combination of all 3.

In the future, you'll have to be 70 to collect 100%. You want to collect at 65. Fine. You get 50%. Your choice.

9 posted on 09/05/2021 6:49:08 PM PDT by MinorityRepublican
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To: Dilbert San Diego
2. Reduce benefits, especially for people with other retirement income.

What’s your plan for people who paid into SS their whole life and were responsible about their own saving and investing? They’re SOL?

10 posted on 09/05/2021 6:51:09 PM PDT by IncPen ("Inside of every progressive is a Totalitarian screaming to get out" ~ David Horowitz )
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To: SeekAndFind

Bookmark to share.


11 posted on 09/05/2021 6:53:33 PM PDT by grobdriver
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To: Honest Nigerian
> . It is rather broken beyond repair, like a 50 year old dishwasher. <

Be careful when making such a sweeping statement. I know a 75 year old dishwasher that is working just fine. So you never know!

j/k

12 posted on 09/05/2021 6:55:29 PM PDT by Leaning Right (I have alrseady previewed or do not wish to preview this composition.)
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To: IncPen

I oppose people being SOL, but I expect Social Security benefits will be means tested at some point. I’m against that happening, but I think liberals will push for such a change.

The argument would be, wealthy people such as Donald Trump don’t “need” Social Security benefits they have earned.


13 posted on 09/05/2021 6:55:48 PM PDT by Dilbert San Diego
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To: Dilbert San Diego
ANY plan to fix Social Security will have some combination of these changes to the program.

Import a bunch of immigrants of working age paying into the system to buy time.
14 posted on 09/05/2021 6:57:00 PM PDT by Dr. Sivana (There is no salvation in politics.)
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To: SeekAndFind

Maybe they should stop paying people to stay home and not work................make them get out there and get a job so payroll taxes start going back into it. Also stop letting people who never paid into it get monthly checks


15 posted on 09/05/2021 6:58:15 PM PDT by blueyon (God, it's who we need)
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To: SeekAndFind

Yet the dumb MOFOs still have restrictions on retired people making money after they retire...that is, for those who want to make some extra to supplement their SS.
I work part time doing forestry work, not that I need it, its always nice, but to simply stay healthy.

Abt 34 grand per year for a couple and then you get to pay income taxes on 85% of your SS.

I dont know anymore what the amount is you are allowed after you take early retirement.

Open it up. Let em work part time with unlimited wages without restrictions. I pay into FICA while I work part time. Its not a fix all, but it would slow down the inevitable a tad bit.


16 posted on 09/05/2021 7:00:52 PM PDT by crz
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To: SeekAndFind; All

LOL! There’s no actual ‘money’ nor any actual ‘accounting’ for actual ‘money’ in ANY Government program!

Our future? “You’ll own NOTHING and like it!”

Plan accordingly, FRiends.


17 posted on 09/05/2021 7:07:34 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust post-Apocalyptic skill set. )
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To: SeekAndFind

They’re getting ready to cut social security benefits. Get ready to go back to work


18 posted on 09/05/2021 7:09:24 PM PDT by Nifster (I see puppy dogs in the clouds)
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To: Dilbert San Diego

The full retirement age is currently 67


19 posted on 09/05/2021 7:10:19 PM PDT by Nifster (I see puppy dogs in the clouds)
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To: IncPen

Yup


20 posted on 09/05/2021 7:10:53 PM PDT by Nifster (I see puppy dogs in the clouds)
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