Social security payments expected to face ‘steep cuts’ in just a few short years

In a completely predictable turn of events, one of the Ponzi schemes that the federal government has been running is set to collapse in just a few short years. Here’s this, from an item out at FOX Business today:

The head actuaries for Social Security and Medicare testified before a House panel on Thursday about the two safety net programs’ looming financial woes that could see key trust funds depleted in roughly a decade, which would leave beneficiaries facing a benefit cut if the funding gap isn’t resolved by Congress.
Trustees for Social Security and Medicare recently released a report that looked at the health of the key trust funds that found that key trust funds are on pace to be depleted in roughly a decade. When that happens, those programs would only be able to pay out what they receive through incoming payroll tax receipts, meaning benefits would be automatically cut under current law.

Here are some of the specifics:

Social Security’s Old-Age and Survivors Insurance (OASI) trust fund is expected to be depleted in 2033, when just 79% of scheduled benefits would be payable. When merged with the Disability Insurance (DI) fund, the date shifts to 2035 with 83% of benefits payable. Based on the $1,907 average monthly benefit as of January 2024, that 17% cut would leave beneficiaries with a $1,582 check — $325 less per month and $3,900 less per year.

So not only will there be cuts—a guarantee if we simply don’t do anything different—but you’ll likely be taxed on it. In some cases, social security benefits are already taxed,

Which will turn it into a giant wealth redistribution scheme.

It already is. I sat down and figured out the SS payments for two people, one who made the SS max income all of his career and a second who made exactly half of that so he paid one half the tax. When it came time to collect, the lower income person got three quarters of the payments of the higher tax payer. If the higher number served as the baseline, than means the lower paid one got a 50% bonus over the proportional payment.

I had planned to find the payment level which exactly matched the average tax and benefit and use that as the baseline to calculate all of the other tax/payment rates relative to it, but I could not figure out how to automate the entry of payroll data into the SS website so I only did two by hand.

Social Security cuts are very credible using the following—

First, if a certain number of dollars need to cut, that reduction won’t be uniformly distributed. Lower end recipients will get their full check. Higher end, less so.

You can do this explicitly, or more likely by adjusting the annual COLA differently by check size. Not net worth means testing. Rather, bigger checks get less COLA.

“ Everyone knows that the Politicians in DC have more loyalty to Ukraine than US Retirees.”
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Well, the US government is ALREADY PAYING UKRAINIAN RETIREES … OUT OF “GENERAL” TAX PAYER DOLLARS. But paying American social security retirees out of “general” tax funds (instead of out of “trust”funds) is apparently AGAINST THE LAW. So your point has a lot of validity.

And ZEEPERS rejoice at this prioritization.

And, the baby boomers will be passing on which should ease the impact on these programs.

Do you really think that will fix anything? The real issue is inflation. Our fiscal insanity at the wasteful Fed Gov is destroying the entire nation. It is going to get much worse since BRICS has had so many nations wanting membership. And Saudi Arabia has ceased renewing US Dollar as the oil exchange currency.

Still More ☭#Dem_Insanity!

OF COURSE its going to collapse in a decade.

Know how I know? I’m 54.

Therefore it is a metaphysical certainty to go bye bye just as I would collect my first nickel from it after having paid into it my whole life. Pretty much all Gen Xers like me knew this would happen and we all said so back in the early 90s. This is no surprise.

everyone’s social security savings should be placed in a special personal account that would not be available for withdrawal until 63 at the earliest.

that account would then receive all standard contributions going forward.

also, the account should be either invested in long term CDs to receive at least 3%... or invested in the S&P index fund.

and upon death, the remains of the account would go to the person’s estate.

analysis of such shows such accounts being sustainable for the average person’s contribution from the time they’re 18 to retirement.

Total US Government Revenues in the 2023 fiscal year were $4.44 Trillion from all sources. This includes Social Security and Medicare Taxes.

If you subtract the Social Security and Medicare Taxes, the remaining General Fund Revenue is $2.9348 Trillion.

Total General Fund Revenue of $2.9348 Trillion divided by our $35.6 Trillion debt is 8.5%. That means that if interest on the National Debt reaches 8.5%, it takes 100% of our General Fund Revenue just to pay interest with ZERO left to run the government.

Many of you remember rates of 15% to 20% in the early 1980’s thanks to Carter.

“ Total General Fund Revenue of $2.9348 Trillion divided by our $35.6 Trillion debt is 8.5%. That means that if interest on the National Debt reaches 8.5%, it takes 100% of our General Fund Revenue just to pay interest with ZERO left to run the government.

Many of you remember rates of 15% to 20% in the early 1980’s thanks to Carter.”
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Bears repeating… and repeating often.

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