Posted on 03/09/2020 9:49:19 AM PDT by where's_the_Outrage?
As you may have heard, our nation's most successful social program is in a bit of a bind.
Every year since 1982, the Social Security program has generated a net cash surplus. By bringing in more revenue than is paid out in benefits each year, the program has been able to build up a $2.9 trillion reserve. However, according to the 2019 report from the Social Security Board of Trustees, the program is about to hit an unwanted inflection point.
You see, more than a half-dozen ongoing demographic changes are expected to result in Social Security expending more than it collects in 2020. While this initial net cash outflow will be relatively small, the amount flowing out of the program will increase exponentially in subsequent years. By 2035, Social Security's asset reserves of $2.9 trillion are forecast to be completely exhausted.....
The problem is that Social Security finds itself in a Catch-22. The "Catch-22" phrase describes a dilemma that offers no escape because of mutually conflicting or dependent conditions. In Social Security's case, no matter what unilateral proposal is made to resolve the program's cash shortfall over the long term (defined as the next 75 years), benefit cuts for retired workers seem to be a given.
(Excerpt) Read more at msn.com ...
My retirement plan is based on =zero= Social Security. Any I do get is gravy.
You may be right about the first target.
But, it is also important to note that there is really no reserve. The SS Trust Fund is an accounting fiction since the LBJ years.
In the early days of Social Security, it ran a surplus, and had to invest it in tradeable securities, like issued government bonds.
Since the Johnson years, the Trust Fund consists of Treasury IOUs, not separately marketable. They are just promises to ask the government to raise future taxes in the amount of the IOU. In other words, since the 60’s Social Security is a true Ponzi scheme, operating on a cash flow basis with new funds raised to support previous entrants. The Trust Fund is an accounting entry.
And another group to be hit, will be more affluent retirees, who will be said to “not need” Social Security, because they have 401k and IRA and home equity wealth. The fact that they paid into Social Security during their working lifetimes will be considered irrelevant when powers that be , future liberal government officials, decide to make these changes.
Hopefully not, I did my 22 years. The Military does pay social security tax.
I know President Obama like to refer to us as Working Retired when talking about our heath care (Tricare). Obama doesn’t like the military.
If they did that to the military they would have to do that to federal employees also.
Could somebody explain why unconstitutional Social Security didn’t simply require people to by US savings bonds, FDR establishing such bonds in those days too?
This number changes almost yearly and is nothing but a scare tactic for the libs to raise taxes.
That said I thiunk the ceiling for contributions ought to be lifted so workers pay on all the earn from their employment. The maximum payment should also be increased so high earners are not penalized.
It is also time for a private self funded retirement plan for those who want to opt out of SS entirely.
Was there talk under Obama about the government taking over 401k and IRA?
SS has been “unsustainable” for years along with Medicare/Medicaid. This according to the funds Trustees.
But nobody gives a ship about it. People are focused on transgender rights, welcoming refugees from third world ship holes, and handing out assorted free ship to deadbeats.
Yes there was some talk under the Obama administration of doing that. I expect the next Democrat president will revive such plans.
The other thing likely to happen is the eligibility age will be increased.
Thanks to the scheming FDR and his left wing friends.
The Democrats would love to take things away from veterans and give them to illegal aliens.
“If they did that to the military they would have to do that to federal employees also.”
You mean just like military get their retirement reduced if they also get VA disability but other federal retirees get full retirement plus any VA disability?
Yep, nobody is going to care until these schemes start collapsing under their own weight.
Then people will probably whine that they weren’t fixed, even though they voted against anyone for the last 50 years that even suggested we might need to make some adjustments.
...of non-interest bearing Treasury notes that are worthless until Congress allocates money to redeem them.
1. Offer millennials cancellation of their student debt, in exchange for their renunciation of SS retirement benefits.
2. Collect the tax anyway.
I’m serious. Millennials gain an immediate benefit, in exchange for surrendering a highly uncertain benefit 30-40 years in the future. Their continued payment of FICA taxes leaves them no worse off, while stabilizing the program for current and near-term retirees.
What am I missing?
This is news?
The Congress spent that surplus faster than a crack whore.
There is no money. There is no “surplus.” Anyone who seriously believes this is just crazy.
Anyone under the age of 50 who thinks any government promised pension or SS was real is going to be sadly disappointed.
You want to see a government agency that is required to fully fund their pensions? Look at the Post Office. How are they doing?
Very well put. That is the most logical and least inflammatory explanation I have ever heard. I will shamelessly plagiarize that.
But, but we wuz promised back in 1964!
https://www.ssa.gov/history/ssa/usa1964-2.html
Self-Supporting
The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.
It now takes three workers to support one retiree, when those three retire it will take nine. When those nine retire it will take twenty seven.
Now add that into the millions now retired and you will see soon we will need over a billion workers to support those retiring in the future, and today’s young people are aborting those future workers.
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.