Skip to comments.First General Motors - Then Social Security
Posted on 06/06/2009 11:48:52 AM PDT by moneyrunner
In 1962 GM had 464,000 workers and was paying benefits to 40,000 retired workers. There was one retiree for every 11.6 employees. The average age at death was 67. GM currently has 62,000 hourly workers and 29,000 salaried workers in the USA. Today GM also has 493,000 retired workers drawing benefits and the average age at death is 77. That is 5.4 retirees for every single active GM worker. Over 75% of the retirees were hourly workers. The average retiree receives $37,800 in payments annually plus medical benefits.
There is no possible way that a single employee can support 5.4 retirees in the manner they have become accustomed. This is why the UAW has already begun cutting benefits to current retirees as a result of the bailout deal. GM has transferred its liabilities to a trust and as part of the bailout the UAW gets a 17.5% ownership position in GM plus some other payments. When GM comes out of the bankruptcy they will no longer have this monster cash drain. Unfortunately retirees will be forced to live on drastically reduced income levels.
(Excerpt) Read more at moneyrunner.blogspot.com ...
Like the pyramid sceems from the late 70’s early 80’s
With the confiscatory tax rates that will be needed to support social security, illegals will go back home when they realize they’re going to be baby-boomer retirement slaves.
Dream on. Illegal workers cannot support our SS system. In 1950 there were 16 workers for every retiree, today it is 3.3, and by 2030 it will two workers for every retiree. And by 2030 one in five in this country will be 65 or older. The system is unsustainable as currently structured.
Anyone who plans on SSI in their retirement is out of their freaking minds (I used to say “anyone under 50, but then I got there...”)
I plan on living on welfare in a trailer park.
Of course, the “trust fund” does NOT exist, but nobody in the MSM will explain that logical fact, to the public.
100% of the benefit will be taxable to the retired folks.
100% of earned income will be subject to SS taxation, for those of us who have not, yet, retired.
The “full retirement age” will be increased to age 70.
Removing the cap would represent the biggest tax hike in history. I doubt it will happen. The cap goes up every year now. It is now $106,500 up from $76,000 in 2000. Eliminating the cap on wages subject to the OASI payroll tax would generate only enough revenue to delay the date of the system's insolvency by a few years
The full retirement age will be increased to age 70.
SS is a pay as you go system. The last time it went into the red, Congress passed P.L. 98-21, (H.R. 1900), which raised taxes and reduced benefits, including raising the age for full benefits from 65 to 67. The fix was supposed to make SS solvent for 75 years. By 2016, SS will be in the red again or just 33 years later.
Congress will just kick the can down the road again by making some fixes to keep the system running a little longer, e.g., change the COLA formula, make it a more means tested system, change the benefits calculations, etc. No matter what they do in this regard, the system is structurally unsound. It is unsustainable over the long term unless the system is changed. Personal accounts with a small defined benefit system is the way to go.
Youth, take some advice from me, do not rely on our Government. Invest in IRA, 401k or something safe.
I believe I read this week that due to the economic down turn that the SS is in the red now. That is that SS is now paying out more than is coming in. They are actually cashing in some of the Treasury Certificates.
Yes, it will.
Taxes on the “rich” are more politically acceptable.
The earnings cap is almost certain to be removed, on all payroll taxes.
what is considered safe anymore?
I cant imagine what that would be. I used to think that Blue Chip stocks and Utilities were safe investments. I learned recently I was wrong.
Municipal bonds have also been losers. Right now one of what used to be the riskiest investments seems to me to be the safest; commodities namely metals. Copper, steel, platinum. Stuff I wouldnt touch before.
The Obama economy is completely BassAcwards.
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details and previous articles.
I suggest you read the link I provided on its impact. No politician, including Obama has propopsed that solution. The employers would have to come with the matching amount and if you were self employed, it would be huge, especially for small business owners. And then there is the little matter of benefits.
You might see a raising of the cap to $250,000 or some lower amount. It is certain that it will not be removed altogether.
Since when does proving a bad idea IS a bad idea -—
STOP the bad idea?
Yes, you are right.
It IS a bad idea.
NO, you are wrong -—
It will happen anyway!
No, you are wrong. There is not the political will or the votes to do it. The Dems would be committing political suicide by voting to lift the cap entirely nor would they vote to tax all SS benefits. AARP would torpedo any such efforts that would tax all SS benefits. Less than one-third of the current SS beneficiaries pay taxes on their benefits.
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