Hot Topic: Social Security

[Dirtrider]

SS is the worst "investment" anyone can ever do. You are forced to pay into a program that will lose 4.3% over time and after all the years of paying into it, when you die it all goes back to the folks that waste it the best. Wish we could opp out and have a personal account. It will grow and when you pass, you can give it to others, not Uncle Sam. No party will stop it but having a plan to replace it over time would be in the best interest of all. A bit over 47% don't even pay taxes so it won't stand on it's own forever. Get yours while you can and enjoy today

 

[SLB_SA]

Some call SSI socialism.

Each person who worked in a job covered by social security paid FICA taxes into the system and received a promise of retirement benefits in return. This is a contract between workers and the government, not socialism. (Socialism isn't good or bad.)

 

[bullfrog]

Who really cares what you call it or how you fund it? If everyone in a society doesn’t have basic needs met every member of that society suffers from it. “No man is an island.” A lot of people on here live on Social Security benefits in vehicles. I believe many people living in wealthy neighborhoods have shown that to them people living in vehicles in their neighborhoods is a problem for them. Spending tax dollars to temporarily clean up is wasted if you don’t solve the real problem. Raising minimum Social Security benefits to a point it would cover the costs of basic housing would help everyone as an example. This and many other basic needs for those that need them could be paid for several ways but the most popular method seems to be a small percentage tax on people making over $400,000 or on large corporations and since all involved get a better place to work and live you would think it would be easy to vote for people that get results or are trying to help people that need it.

 

[SLB_SA]

Who really cares what you call it or how you fund it? If everyone in a society doesn’t have basic needs met every member of that society suffers from it. “No man is an island.”

Politicians care greatly about "what you call it or how you fund it" and politicians determine the future of social programs.

 

[bullfrog]

^^^ Agree but many politicians are more worried about funding their careers than helping the people they represent. What amazes me is how the people they represent continue to vote for people working against making a better life for all and instead just advancing themselves.

 

[SLB_SA]

Here 'Damaging cuts' to Medicare and Social Security are looking more likely with McCarthy as House speaker. Here's what it will mean for retirees. is an article ends with:
Johnson also noted that any sort of stalemate over budget negotiations could endanger the timely payment of Social Security benefits, which would hurt seniors. "Senior advocates often point to the fact that Congress has never failed to lift the debt limit and pay Social Security benefits on time," she said, but "after the difficulty electing a speaker of the House, this may be time to say 'never say never.'"

 

[user 22017]

The trust fund built up to over $1.7 trillion. <snip>When it runs out benefits will either have to be reduced by about 25% or revenues increased.

Thanks for posting. Motley Fool has different figures, but says essentially the same thing.

Other things to remember about the SS Act in 1983 are:

"The Amendments of 1983 are perhaps best known for the creation of the taxation of Social Security benefits, as well as passing along a gradual increase to the full retirement age – i.e., the age where you become eligible to receive 100% of your retirement benefit. "

It was bipartisan legislation. One party wanted the age increase, even though low income folks die much younger than those with money (statistically). See: https://prospect.org/economy/poor-die-younger/

The other party wanted SS taxed. Both got what they wanted.

From Motley Fool: https://www.fool.com/retirement/2018/07/09/the-1-thing-nearly-everyone-forgets-about-reagans.aspx

 

[egilbe]

Each person who worked in a job covered by social security paid FICA taxes into the system and received a promise of retirement benefits in return. This is a contract between workers and the government, not socialism. (Socialism isn't good or bad.)

The history of Social Security had detractors calling it socialism, like most of FDR's New Deal policies. The Social Security number was argued against because people wanted to be known by their names, not a number. It was also argued that it would become a national ID number. Welcome to 1984...

 

[mkoontz]

Yes it's weird they're saying it's going broke (from baby-boomers retiring, I guess) as they have already been paying into this 'fund' for 40 yrs or more. Shouldn't it have ballooned up "big time" just as they started to retire? And I don't see how "rich people" have anything to do with this problem. In fact, I believe they benefit little (or none) from paying into SS.
Keep in mind, they are kicking around raising the "full retirement age" a maximum of 1 year at this point (and not affecting anybody who is retired or nearing retirement). So reacting to the word "bankrupt" is not appropriate.

 

[SLB_SA]

Keep in mind, they are kicking around raising the "full retirement age" a maximum of 1 year at this point (and not affecting anybody who is retired or nearing retirement). So reacting to the word "bankrupt" is not appropriate.

Mr. Johnson (incumbent Republican Senator from Wisconsin) has proposed subjecting Social Security and Medicare to annual congressional spending bills instead of operating essentially on autopilot as they do now. That would leave the programs susceptible to Washington’s frequent and fraught debates over funding the government, making it more difficult for retirees to count on a steady stream of benefits.

Mr. Biden and other Democrats have also criticized a plan from Senator Rick Scott of Florida, the chairman of the Senate Republicans’ campaign arm, who has proposed subjecting nearly all federal spending programs to a renewal vote every five years. Like Mr. Johnson’s plan, that would make Medicare and Social Security more vulnerable to budget cuts.

Several conservative Republicans vying to lead key economic committees in the House have suggested publicly that they would back efforts to change eligibility for the safety net programs. The conservative Republican Study Committee in the House, which is poised to assume a position of influence if the party claims the majority, has issued a detailed plan that would raise the retirement age for both programs and reduce Social Security benefits for some higher-earning retirees. The plan would increase premiums for many older adults and create a new marketplace where a government Medicare plan competes with a private alternative, in what many Democrats call partial privatization of the program. Republicans, Eyeing Majority, Float Changes to Social Security and Medicare

How the GOP Could Win Its Long War Against Social Security

 

[Spaceman Spiff]

Here is the official Social Security Administration report for 2022:
https://www.ssa.gov/OACT/TR/2022/from it you can download the full report and supporting documentation. Knock yourself out.

Here is a relevant graph from report:


Note that the $2.75T reserve is gone by 2035.
I await rebuttals.

 

[dhuff]

Wish we could opp out and have a personal account.

I'm not against this in theory, but there would have to be iron-clad arrangements in place that if you frittered away your "personal acct" via poor financial mgmt or bad/speculative investments, that you absolutely couldn't come crying to the rest of us taxpayers to bail you out.

This does not address the issue of the wealthy opting out of paying their fair share of taxes, of course.

 

[SLB_SA]

Note that the $2.75T reserve is gone by 2035.
I await rebuttals.

A number of proposals (and bills in congress) have been introduced to solve this problem. What is lacking is political will. The graph is a projection, not the actual future.

 

[SLB_SA]

This video might interest you: How Social Security Will (Probably) Get Fixed by 2034

 

[BlueMarkOhio]

Here is the official Social Security Administration report for 2022:
https://www.ssa.gov/OACT/TR/2022/from it you can download the full report and supporting documentation. Knock yourself out.

Here is a relevant graph from report:
View attachment 33523

Note that the $2.75T reserve is gone by 2035.
I await rebuttals.

2035 sounds about right, subject to the vicissitudes of inflation and recession. That is actually a lot better than was originally expected. The trust fund surplus was always intended to run out. After that date the program would return to pay-as-you-go as in the first 40 decades, requiring a cut in benefits or an increase in yearly revenue. This has been the intention all along, not a surprise, not a crisis.

 

[user 25174]

Mr. Johnson (incumbent Republican Senator from Wisconsin) has proposed subjecting Social Security and Medicare to annual congressional spending bills instead of operating essentially on autopilot as they do now. That would leave the programs susceptible to Washington’s frequent and fraught debates over funding the government, making it more difficult for retirees to count on a steady stream of benefits.

Mr. Biden and other Democrats have also criticized a plan from Senator Rick Scott of Florida, the chairman of the Senate Republicans’ campaign arm, who has proposed subjecting nearly all federal spending programs to a renewal vote every five years. Like Mr. Johnson’s plan, that would make Medicare and Social Security more vulnerable to budget cuts.

Several conservative Republicans vying to lead key economic committees in the House have suggested publicly that they would back efforts to change eligibility for the safety net programs. The conservative Republican Study Committee in the House, which is poised to assume a position of influence if the party claims the majority, has issued a detailed plan that would raise the retirement age for both programs and reduce Social Security benefits for some higher-earning retirees. The plan would increase premiums for many older adults and create a new marketplace where a government Medicare plan competes with a private alternative, in what many Democrats call partial privatization of the program. Republicans, Eyeing Majority, Float Changes to Social Security and Medicare

How the GOP Could Win Its Long War Against Social Security

This slant on projected party wrongdoing seems to be politically motivated.
Is this the venue for such a thing?
Just sayin'.
Regards.
Social Security recipient, and 'independant' voter.

 

[bullfrog]

^^^If you think so just look at the party’s stated goals and the recent house leader’s statements on the subject. Informing people of sources of information about proposed changes to Social Security that could affect many members on this forum seems appropriate as long as they are sources to actual representatives statements. Opinions of those making the statements probably not but opinions on the changes they propose are in my opinion.

 

[RvNaut]

Is this the venue for such a thing?

Many of us depend on the SSI we paid for. The point being, WE PAID FOR IT..... any talk of taking this away is theft. The threats to shut down the government is what bullies do to get their way. *I* cannot afford to miss a SSI check. The very act of threatening to cut me off from the funds I paid for... paid for since I was 12yo.. it isn't a hand out or welfare, yet I am told I am a leech... called a do-nothing... called a cheat on the system...

So .. many of us in the nomad community have retired to our vehicles because there is no other way to live on the meager funds we have
access to.. so yeah... this is an appropriate place for this discussion.

We should all be able to make a point in this discussion without name calling or doling out misleading information.

I have seen no honorable reasons to eliminate the SSI system. The only reason I can see is to free up these funds so others can make money off of them. I see the only reason to eliminate SSI as greed of others wanting access to those funds.

The claims of bankruptcy are based on lies and misinformation. The problem could easily be solved, but the motivation of those in Washington is not to serve me and my need, but to serve the wants of the rich, the rich who never seem to have enough money.

There are factors that have been trying to remove all social services and they have been doing it for decades.

 

[user 22017]

This slant on projected party wrongdoing seems to be politically motivated.
Is this the venue for such a thing?
Just sayin'.
Regards.
Social Security recipient, and 'independant' voter.

If it helps, Biden had been calling for cuts to SS and Medicare for 40 years. Both parties have issues.

 

[SLB_SA]

This slant on projected party wrongdoing seems to be politically motivated.
Is this the venue for such a thing?
Just sayin'.
Regards.
Social Security recipient, and 'independant' voter.

The topic is publicly announced proposals to modify social security or medicare. The proposals by the GOP seem designed to adversely affect benefits. The facts are the facts; present other facts (e.g. GOP proposals) if they exist.