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.
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.
They can borrow and spend trillions at will. I don’t see the problem.
This ponzi scheme was broke long ago. The “lockbox” is filled with iou’s
It helps if more people work rather than being on unemployment.
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.
Adorable that they act like it is self-funding.
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.
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.
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.
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?
Bookmark to share.
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
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.
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
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.
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.
They’re getting ready to cut social security benefits. Get ready to go back to work
The full retirement age is currently 67
Yup
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.