Posted on 07/13/2015 3:37:55 PM PDT by Oldeconomybuyer
The projected Social Security shortfall is likely to hit younger workers hardest. Social Security has two trust funds: the Old-Age and Survivors (OAS) fund, and its smaller sibling, the Disability Insurance (DI) fund.
Last year’s report said the combined reserves of both funds would be exhausted in the year 2033, at which time it could pay only 77¢ on the dollar of its benefit obligations. The DI fund, however, faces a more immediate crisis. It will run out of money in 2016—as in next year—and its 0.9% payroll tax levy will then collect only enough to pay 81% of its benefit obligations. The DI fund has faced shortfalls before, and Congress has papered over the problem by transferring money into it from the larger OAS fund.
But there is no sign yet that Congress is any more willing to tackle this issue than it has been during the many years since it became a well-known problem. If anything, Democrats have seized on rising income inequality to mount a campaign that Social Security benefits should be increased, not reduced.
All of which raises the big question: What should current workers and near-retirees expect from Social Security now? For anyone 55 or older, relax—it’s highly unlikely that your Social Security benefits will change substantially. Even the reform proposals with the steepest benefit cuts tend to leave this age group alone. Younger generations, however, have more reason to be concerned. Opinion polls regularly find that many younger workers think Social Security will not be there for them when they retire.
(Excerpt) Read more at time.com ...
Get rid of DI and SSI..... Should never have been part of SS.
Get real.
The Congress will never let that happen. They’ve got the WD-40 to grease up the printing presses when the need arises.
And at this point, what’s another couple of hundred extra billions? The dollar’s fate has been sealed for years anyway.
“Means testing” folks. Coming soon to a Congressional Bill affecting YOU.
The Obamacare Death Panels will be a major plus for SocSec.
Every year sliced off the lifespan is huge for the financials.
Bttt.
We’re all gonna die! Women and children hardest hit.
The disability fund is practically broke right now. Social Security will run out of money in 10 years. Not to worry though, 0bama says there is no crisis.
Every dime I've "contributed" to my Social Security fund was spent before I even started earning it.
Paging President-to-be Albert Gore (2000) ... Please pickup the red phone and inform the world about that sacrosanct Social Security Lockbox. Apparently it has gone missing and since you were the last person to ‘own it’, you need to find it.
I have had enough...
IF..social security is a fund..
FIRE THE FUND MANAGER..
any goofball out of school can get 7% on investments..
social security ( and most union run pension programs ) get less than 3%...
my god, with a fund worth TRILLIONS of dollars you should be making TRILLIONS of dollars annually...
fire the managers, pay a private fund real good cash, and the whole damn thing would be solvent in less than 7 years...
why do we, the people, continue to pay for incompetence and/or corruption on this grand a scale...
Bookmark
How much money would we save if illegals were sent home AND Mexico was BILLED for the ‘services’ they used while in the United States?
The savings can be applied to Social Security.
winnah winnah chicken dinnah
Any article that opines “Social Security is RUNNING out of money” is using the wrong verb tense and financially illiterate. The money we are allegedly counting on to carry us until 2033 is a stack of I-O-MEs, written on the same federal gov’t that is already broke.
By this logic, if I write the Missus a check for a million dollars, we’re millionaires.
um, there is no SS fund to be invested.
SS derives all of its funding from the payroll tax.
Any revenues so received in excess of current payments to retirees must by law be invested in a special type of Treasury bond that can only be purchased by the SSA.
So, the SSA gets a bond (I.e. Piece of paper)
The Treasury gets the cash, which is then placed into the General Fund.
Where it helps hide deficit spending.
At some point, whether due to poor economic performance or increased retirements or both, the funds coming into SS will be insufficient to meet current obligations.
At that point, the SSA must by law sell those special bonds back to the Treasury; the Treasury must by law redeem these bonds when presented.
The SSA gets the cash, and the Treasury receives then bond.
But where does the Treasury get the cash? From the General Fund, of course. If there is insufficient cash available, then the Treasury must float debt sufficient to raise the cash to redeem the bonds presented.
Which is why Obama was unable to guarantee SS payments if the debt limit wasn’t raised.
You can expect sgnificant tax and debt increases over the next 10 years as the baby boomer retirements hit their stride. And the continued Obama assaults on the productive classes and the resulting tepid economy only hasten the day of reckoning.
As sure as the sun will rise, sometime in the next administration, either republican or democrat, there will be a whole new set of taxes to keep SS afloat....bank on it. Sorry to say, but America loves its SS.
The $250,000 plus that I have and am currently paying into SS and Medicare has already been spent.
I decided to start Collecting my SS at 62 simply because I have some Health Issues that don’t lend themselves for me living a long Life on Planet Earth. It will also help to pay our Monthly $1,900 Health Insurance Premiums thanks to Obamacare.
I’m not even getting my first Check until Two Months after my 62nd Birthday, what a rip. LOL
Excellent post.
Pretty good thread so far, almost 20 responses and no “The Government Promised Me!!! Gimme My Lockbox!!!” yet.
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