The way it works is simple: Rather than the government taking a percentage of each check to be contributed to the Trust Fund, employers are required to make these deductions, and the employee then chooses from one of hundreds of providers to manage the funds.
This structure eliminates the problem of government mismanagement that has plagued the U.S. system. While the federal government claims allegations of raiding the Social Security Trust Fund are a myth, evidence suggests it has “borrowed” as much as $1.7 trillion from the fund in order to pay the tab for other efforts, everything from deficits to foreign adventurism.
“While the federal government claims allegations of raiding the Social Security Trust Fund are a myth, evidence suggests it has “borrowed” as much as $1.7 trillion from the fund in order to pay the tab for other efforts, everything from deficits to foreign adventurism.”
Semantics. There is no difference between stealing money and borrowing it with no intent of returning it.
It’s not going to go belly up. It’s just not going to bring in what it takes out. They will adjust when the time comes either by using federal funding, raising the cap or raising the age.
I was never a fan of conservative talk show host Phil Valentine but he had one standard line that was absolutely brilliant.
Government should only be entrusted to do what the private sector can’t, won’t or shouldn’t do for itself.
All you need do is look at the federal welfare program, where greater than 70% of taxes collected for that purpose are consumed by administrative costs, to understand that government sucks at managing money.
If my SS. contributions grew at the same rate as my 401k over the past 30 years, I would have a net worth almost 3 times higher. Putting the earners under age 30 contributions in a private account might be the solution, as seeing my retirement accounts are dominated by the earnings off very small amount of money invested before 30. 30 years the 60 year old will not even miss the benefits. They do not make enough today to change the status of the program for the next 10 years.
p
SS funding is being used to buy votes for the Dem party and has been since at least the mid-1960s (War on Poverty)
SS money is being paid out - en mass - to people who never put a dime into the system (example - crazy checks) - all the downside to SS is directly tied to Democrats using it as a slush fund.
I find the names of things interesting. Super? annuation?
.https://www.merriam-webster.com/dictionary/annuation
annuation
noun
an·nu·a·tion ˌanyəˈwāshən
plural-s
1
: annual variation in the presence or absence or the abundance of particular members of a plant community usually relatable to annual climatic variation
compare ASPECTION
2
: ecological observations made over a period of years
This is just the tip of one huge and monumental crisis.
Medicare
Medicaid
$34 trillion in debt
Can someone please explain how we dig out of this hole without a collapse?
No wonder BRICS is growing like a weed.
Same old clap-trap been touted for decades.
Companies used to employe huge teams of MBA’s to build and maintain pensions. They couldn’t do it.
Now everyone is expected to do it themselves, and it is not working either.
Sad thing is that retirement has never been viable historically, and probably won’t be.
***Endless promises from both Republican and Democratic administrations over the last twenty years***
What they promised back in 1964...
https://www.ssa.gov/history/ssa/usa1964-2.html
Self-Supporting
The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government. Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.
****
The original SS program had you retire at 62. You were expected to die at 57 years.
Then came penicillin and threw the whole system out of whack.
But if you privatize it, you’ll have a lot less desperation and a lot less control for the politicians and bureaurats, an who wants that?