Social Security official: Promises can't be met

The Uunion Leader ^ | 12/26/05 | Shawne K. Wickham

[xrp]

And with major risk come major rewards. Congrats! :-)

I'll be there one day, hopefully before Congress can vote to confiscate it all.

[kabar]

That's how America got into the fix that will see the Social Security trust fund run out in 36 years unless something is done, according to James B. Lockhart III, deputy commissioner of the Social Security Administration.

There is no money in the SS Trust Fund, just non-marketable T-Bills, which are really IOUs. SS is a pay as you go system. Beginning in 2008, the SS "surplus" will start declining and in 2017, we will start paying out more than we are taking in. In order to meet those obligations, we will need to borrow more money and/or cut spending or programs.

I am a little concerned that the Deputy Commissioner of SSA is still maintaining the charade of a SS Trust Fund.

[EGPWS]

Why do they keep talking about a Social security Trust fund. There is no such animal.

I don't know how old you are however if you have spent more than a decade working or running a business, you would get (or have been) teary eyed looking at the ratio of input of SS funds compared to the available funds at retirement on a personal basis.

Just a little ditty to contemplate the next time a politician requests you to be complacent when paying your "fair share".

[Vn_survivor_67-68]

"All the feds have to do is raise pay roll taxes."

not a half-bad idea.....so long as you mean to tax the jobs that have been exported with a hefty import tax on services rendered overseas and imports of foreign merchamdise.

[rdb3]

And with major risk come major rewards.

That's what my Pop always said.

[EGPWS]

Beginning in 2008, the SS "surplus" will start declining and in 2017,...

Lest we forget the increase in retirement age that has been bestowed upon us via SS also.

[kabar]

The problem is that the number of workers to support each SS retiree is declining. In 1950, there were 16 workers paying Social Security taxes for every retired person receiving benefits. Today there are 3.3. By 2030, there will be only 2.

48 million Americans receive Social Security benefits, including 33 million retirees, 7 million survivors, and 8 million disabled workers.

By 2030, there will be 70 million Americans of retirement age--twice as many as today.

Social Security faces an unfunded liability of more than $12.8 trillion.

[WVNan]

Keep working. You'll be bored to death. I'm 72 and still working full time. Don't plan on stopping until I can't go any more.

[goldstategop]

Talk of cuts is DOA. No politician who values his career will vote for them.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[goldstategop]

The public decided to pass it up. Hoewever, the President did it put on the agenda and I predict change will happen only when the pain of not changing is worse than the pain of changing at all. We're not at the point yet where people feel something has to be done.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[kabar]

Lest we forget the increase in retirement age that has been bestowed upon us via SS also.

That's correct. The full retirement age today is 65 years and four months. It rises by two months every year, gradually increasing to age 67 for people born after 1959. You can still retire at age 62 with reduced benefits.

The infamous P.L. 98-21, (H.R. 1900) Social Security Amendments of 1983-Signed on April 20, 1983 reduced benefits and increased the retirement age and SS taxes. I suspect that we will see a similar compromise by both parties as the day gets near again when SS can no longer bring in sufficient revenue to pay benefits. The Dems will not pursue personal accounts because they want SS dependence and the issue for political reasons. Medicare is in worse shape.

[goldstategop]

$12.8 trillion, huh? The total value of all goods and services produced by the entire national economy in the past year was $12 trillion dollars. Think about that in relation to SS's unfunded liability. Its more than an overpromise.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[SandwicheGuy]

"Dingy Harry and his Insane Clown Posse" bump

[goldstategop]

The unfunded liability is greater than the net sum worth of our entire economy. I don't know we finance that in full unless we cut everything else every level of government is doing to pay it off. Politicians know the money won't be there but they're too worried about re-election to level with the voters about what's really going on.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[MNJohnnie]

Well you just found out what the X stands for hmmm?

[EGPWS]

That's correct. The full retirement age today is 65 years and four months. It rises by two months every year, gradually increasing to age 67 for people born after 1959. You can still retire at age 62 with reduced benefits. The infamous P.L. 98-21, (H.R. 1900) Social Security Amendments of 1983-Signed on April 20, 1983 reduced benefits and increased the retirement age and SS taxes. I suspect that we will see a similar compromise by both parties as the day gets near again when SS can no longer bring in sufficient revenue to pay benefits. The Dems will not pursue personal accounts because they want SS dependence and the issue for political reasons. Medicare is in worse shape.

What ever happened to states rights and a "closer to home" resolution to domestic issues?

For Washington to be disputing the weighing of foreign and defense spending with domestic spending appears to be a contradiction to the idea of "states rights" and promoting the removing of local jurisdictions and taking the say of the voters to a higher level of irrelevance.

What's next, the bowing to the UN for direction?

[rbg81]

Started an IRA at the age of 16 and still going strong. A shame that more people do not understand that the future is up to them.

I too started saving early (22, right after college). But I do worry that, at some point, those of us who planned ahead will be taxed or penalized (through benefit reductions) because we are "better able" to support ourselves.

I also think its going to worse than the author is saying. After all--THERE IS NO TRUST FUND. It's only a set of IOUs that are going to have to be paid back through more deficit spending. Plus Medicare will soon be running a deficit and the prescription drug promise will just be more dirt on the grave. Lastly, there will be all those companies trying to dump their pensions on the PBGC. Before long, we will have 100% of the Federal budget going to old people. It's gonna get scary.

[rbg81]

Yeah--you don't have enough.

[CGASMIA68]

whats enough?????

[tongue-tied]

re: your tagline---the people?