Have private investment hybrid system. Now what percentage won’t or don’t have the means to contribute. What percentage will just make bone headed decisions and be bankrupted. Now what % of population is left without means in their twilight time? And do we kick them to the curb or …….. return to square one.
You are getting into trust fund accounting. But whatever the case, in 2033, when the excess funding runs, at that point the social security fund has used up any excess surplus it has, at which point the money has been “returned”. Up until around 2020, give or take a couple of years, social security revenues exceeded expenditures. At that point there was in theory a large cumulative surplus (although in reality that surplus had been lent out to the general fund ). After that, when most boomers were retiring (not paying in) and drawing social security (amounts going out) SS expenditures exceeded revenues, deficits were incurred and the surplus reduced and the deficits will continue, forever, under current law. Around 2033 the accounting surplus will be exhausted so at that point social security payments will have to be cut 20% to equal revenues, because social security is not allowed to go into a cumulative deficit.
I have plenty of posts in the past on my position. We need to means test (seriously). And then cut the rates. The program started at 1% employee/1% employer on $3K. Now we are 6.2 times that on 3 times what inflation would have the max taxable be. And the solution is to screw the younger generations more as it has been from the beginning. SS should be only for those that need it. Then you can stop this nonsense of I paid in so my kids and grandkids have to pay me because I paid for my parents and grandparents. A program that helps those that truly need help is fine. But redistributing wealth from younger generations to older generations must stop!
SS is being used for all kinds of other health issues. It's like a private piggy-bank that's getting raided by people that are not even close to retirement age. Maybe they need to find another funding mechanism for those that need an income but are unable to work.
President Bush had the plan back in 2005 that if it would been enacted would have solved the SS problem but partisian politics derailed it.
No it wouldn’t have. It would have privatized into personal accounts about 1/6 of what you put in, then slowed expenditure growth by growing SS during working years at CPI (chained I think ) vs growing at wage growth. It was also based upon some rosy assumptions. Chances are the recent flair up in inflation would have blown those assumptions out of the water.
For me SS is just a tax that I will likely never benefit from. My Mom is on SS and if it helps her and people like her then that’s fine. I have zero expectation that I will receive any benefit once I hit full retirement age. Anything I get will be considered a windfall in my retirement plan.
Not that it makes a shit bit of difference when it comes to SS but it's an election year...they're not proposing anything.
Oh I agree. As we know. They don’t want to do what is necessary. No backbone to be honest about what needs to happen.
They will propose lots of stuff but will enact nothing. My guess is at midnight on the date it runs out of money in 2033 they will pass something but we won’t get to read it until it’s signed into law. What I would like to see is take off the cap. All income gets taxed even capital gains. I would like the extra money to be invested in a spider type fund. if there is a surplus lower the taxes rates. Do not allow congress to touch it. Do not allow them to spend it.
LOL, yeah sounds about right. Problem is, those greedy bastards will never ever pass any law saying their tax money is off limits for pork barrel crap.
I’d rather raise the retirement ago. I have no desire to pay in even more with literally no return on my taxes paid.
It’s math. Reduce the benefits or raise the funding. I’m ok with either. I’d rather add 2% to the payroll deduction. Seems easy.
This says fraud is only about 1%. https://www.brrlaw.com/social-security-disability-fraud/#:~:text=The former Social Security Administration,of disability claims are fraudulent. My adult son applied for SSI (which is administered by social security but not funded by social security taxes) and it wasn’t exactly an easy process. I do know of one person who seems perfectly capable and gets some sort of disability - not sure if SSI or SSDI, but I suspect it is the exception. as it stands right now if nothing changed you’d still get 75-80% of your expected benefits.
