Replies

The SS money was robbed and the pyramid is going upside down, so raise the age or expect a 73% payment.

The money wasn't robbed. SS is going broke because of demography.

All the money collected thru the payroll tax is put into non-market T-bills. SS pays out the benefits and whatever is left stays in the SSTF in the form of non-market, interest earning T-bills. SS has been running in the red since 2010, i.e., the incoming revenue is less than the amount needed to pay benefits. The shortfall is made up by cashing in T-bills from the SSTF. By 2033 the T-bills will be exhausted and then. by law, benefits will reduced to the amount of revenue collected.

SS is a pay as you go system, i.e., today's workers pay for today's retirees. In 1950 there were 16 workers for every retiree; today it is about three, and by 2030 it will be two. By 2030 one in 5 will be 65 or older, twice what it is now. We must increase taxes and/or reduce benefits to keep SS solvent. It is just a matter of demographics. The baby boomers and longer life spans coupled with a benefit system unlinked from revenue is the problem. COLA increases the costs alost every year. There will be no COLA increase this year.

SS is a pay as you go system, i.e., today's workers pay for today's retirees.

Nice try. SS was originally envisioned for today's retirees. Lots of young dependents receive SS, as well as disability recipients far younger than retirement age. And many receive far more money than what they put in, if they put in anything at all. It's a scam that politicians have milked to bankruptcy.

http://www.ssa.gov/oact/progdata/icp.html Graphic there shows retired workers receiving benefits is 66.5 percent of total receiving benefits.
Spouses 4.1 percent.
Children 7.3 percent.
Widow(er)s and parents 7.1 percent.
Disabled workers 15 percent.

Money being paid in by today's workers is going out to pay for more than the number of retired workers. Today it takes three workers for each retiree today; today's worker is getting squeezed even worse than numbers suggest because one-third of payments go out to non-retirees.

http://www.ssa.gov/oact/progdata/icp.html

Graphic there shows retired workers receiving benefits is 66.5 percent of total receiving benefits.
Spouses 4.1 percent.
Children 7.3 percent.
Widow(er)s and parents 7.1 percent.
Disabled workers 15 percent.

Money being paid in by today’s workers is going out to pay for more than the number of retired workers. Today it takes three workers for each retiree today; today’s worker is getting squeezed even worse than numbers suggest because one-third of payments go out to non-retirees.