Skip to comments.Social Security could be big chill for 50-somethings
Posted on 11/28/2005 8:18:17 PM PST by LouAvul
When President Bush proposed a Social Security overhaul this year as the top domestic priority of his second term, he promised the changes wouldn't apply to anyone 55 or older. But Bush's plan has gone nowhere, and actuaries say demographics and simple arithmetic will make it difficult to repeat that commitment in the future.
Americans who are 50-something - a point in life when many are registering peak earnings, seeing their children move into the workplace and beginning to make detailed plans for their retirement - could be in for some unwelcome surprises down the road.
"Keeping that promise this year made our job much more difficult," says Senate Finance Chairman Chuck Grassley, R-Iowa. "I don't see how you're going to be able to have that rule of thumb three years from now."
Americans moving toward retirement wouldn't lose benefits entirely. With no changes, payroll taxes would cover nearly 75% of current benefits when the trust fund is exhausted. But policymakers who want to keep the system solvent and protect low-income seniors could take steps that would affect those nearing retirement or already there: Trimming benefits, especially for the more affluent. Reducing cost-of-living adjustments. Subjecting more Social Security income to taxation.
Changes such as those become more likely for near-retirees as each year passes.
For one thing, the task of fixing Social Security gets harder as it moves closer to the time when it runs a deficit (starting in 2017, according to the Social Security Administration) or exhausts its trust fund entirely (in 2041).
For another, the number of people who are 55 and older is beginning to swell with members of the baby boom generation - the bulge in the population that helped create Social Security's predicament in the first place.
(Excerpt) Read more at news.yahoo.com ...
I'm 40'ish. Been paying into the system since I was a teenager. Won't see an F'ing dime. Nice to know the friggin' felonious mexican squatters will enjoy my largesse, while I work as a 75 yr old greeter at Walmart.
|"Social Security benefits are not:guaranteed" - Michael Tanner, - HERE
Insane System: "Many people are unaware that the money that is taken out of their paychecks for Social Security is not -- repeat, not -- being put aside to pay for their retirement. That money is paying for people who are retired right now, and anything that is left over is being spent by politicians in Washington for anything from farm subsidies to Congressional junkets. ... Liberals are desperate to keep Social Security the way it is, because that means they can keep spending your money as they see fit and keep you dependent on them. That's what the welfare state is all about." -- Thomas Sowell, HERE. Further, the trustees of the Social Security Administration now say the system will begin paying out more in benefits than it receives in taxes in 2017, twelve years from now.
"Your estimated benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The law governing benefit amounts may change because, by 2042, the payroll taxes collected will be enough to pay only about 73% of the scheduled benefits."-- printed at the bottom of page 2 of your Social Security statement
"Private accounts and reduced benefits are the only way out of this one, folks. To make the program truly solvent, the government would have to confiscate so much wealth it would destroy the economy. Maybe the Congress will make the right choice and fix the problem. I doubt it." -- Neal Boortz, HERE.
"An economy hampered by restrictive tax rates will never produce enough revenues to balance our budget -- just as it will never produce enough jobs or profits." -- John Fitzgerald Kennedy
I think you will have a lot of competition for that 'greeter' job. Sorry, this is the way we are headed. Work until you drop.
How much will the social security IOU be in 2017? That's the amount that the American people will have to pay back to the trust fund in order to keep it going until 2041--and that's on top of the taxes they already pay. And then in 2041, it will be bankrupt anyway.
Yeah, there will be some competition, but I'm working on a "soup nazi" spin...kinda the somehow endearing "anti-greeter" greeter. I'll get the gig.
No job if you don't speak spanish.
No. By then native english speakers will be the minority. Then we will be a protected class, right???
Bush tried and no one wanted to help being cowards that didn't want to take the heat from the yapping idiots.
So...screw them. I don't want a thing done with Social Security. I don't want if reformed or fixed or tweaked or touched.
That way it will die on its own and I'll sit back and flip off the whiners wondering what happened while pointing out they didn't want anything to change. Then I'll eagerly point out I wasn't stupid enough to rely on one dime of this ponzi scheme and, unlike them, actually made other plans.
Then I'll rub it in.
That is exactly what will happen. Twenty, thirty years from now our gov't will be so overwhelmed by all the promises it has made over many years, it will have no other choice. It will print trillions of new dollars and so inflate our currency they will be able to wipe out their debts with worthless money. It is coming and you can thank Republicans and Democrats. Once elected they are all the same. They promise our tax dollars for whatever program they think will get them re-elected.
Social Security was always meant as a tax transfer scheme. When the tax revenues are less the transfer, the system winds down. Simple.
The problem is that politicians (Democrats for the most part, but many Republicans as well) pretend that the tax revenue < transer payments never occurs.
What will happen? A return to America prior to Roosevelt's programs. This isn't necessarily bad, but it will mean that people will have to adjust their expectations.
Me estas picando los ojos.
You'll see it. It just won't be worth anything due to currency depreciation.
When I read this today I about blew up - BS - the predicament was made by Congress that threw away the money in SS ...
This is a radically different country today.
This time around, there will either be a push for a strongman to fix everything; or a push to join with other countries (Mexico) to "share the burden".
I am in my 20's and i have accepted the fact that i will not see social security. It annoys me that i will have to keep paying into this system and in 20 yrs from now the feds are going to turn around and say 'oh holy $hit we cant do this anymore'. I have already begun to save and i have a pretty healthy sum of $ stocked away for when the SHTF.. I am not putting one bit of trust in our govt to take care of and neither should any of us. Start a business and dont rely on any coorperation or union to take care of you because in the end we will get the royal shaft.
I might sound negative and all, but its the stone cold truth.. To all these kids getting degrees in sociology and psychology.. you are wasting your time and you parents money.. go learn a trade or a marketable skill thats usefull.. Stop complaining that you cant find jobs out of college.. i wouldnt want to hire you either if all you had was a degree in karl marx and that BS..
Does this mean I better smoke like a chimney, and drink like a fish, get fat, and have dangerous sex?
Just wondering, you know!
I've been working studiously all my life on all four and have mastered only two. So much for my 401k...
It won't be hard to gather enough like minded people like you and do what our Founding Fathers did 200 years ago.
Unfortunately, it'll take an "accident". Damn genetics are strong on maternal and paternal side.
I don't mind working at 75. It'll be fun to be a grumpy old sh*t. Especially if I can get paid while doing it.
I sometimes feel that if we didn't have to pay for an undercalss that breeds like bunnies it wouldn't be so darn bad. But unfortunately the irresponsible get to have kids at their convenience while the responsible have to wait until their thirties to have kids, if they can be afforded at all.
Just watch you money does not lose its value by inflation.
English speaking native born Americans will never be a protected class. Never.
Hey, that's not fair.
I've been forced to pay into that mindless Ponzi scheme known as Social Security my whole life. And when I hit 65 (or whatever the earliest possible retirement age for benefits is) the scumbag politicians better make sure my checks aren't late.
The politicians love to give Social Security money away to illegals and to young bums who claim back pain and to single welfare mothers who get their kids to act "crazy", and so when I finally decide to take a break after a lifetime of working my behind off, those scumbag politicians BETTER come through with mine.
Yeah. My wife and I work two jobs. We work 6-7 days/week. With four kids, it's hard to afford anything, especially when homes are selling for $180/ft2.
I'm just damn sick of having my earnings being confiscated by stupid beaurocats.
I assume that if they cut social security they will also cut congressional and other government pensions, in the spirit of fairness.
I want some of what you are smoking!
"Then I'll rub it in."
LOL, kinda like in the movies when an unarmed person tells the bad guy that they are gonna turn him in.
Social Security is the new welfare. The folks breaking the bank start collecting when their 30...
The SS Trust Fund has no money, just IOUs in the form of non-marketable T-Bills, which can only be redeemed by the US Treasury. The SS "surplus" starts declining in 2008. SS is a pay as you go system. In 2017, we will have to cut benefits and/or increase taxes to keep the system afloat.
Then I'll rub it in.
You seem to be under the false impression that the government is not going to sieze you savings to fund this ponzi scheme.
If you have read present day laws and regulations of the U.S. federal government, you would know that all it takes is a single phonecall from a federal bureaucrat to the bank(s) you use for your savings to become the government's savings. And you only recourse to this theft is the firearms you have in your possession.
It's probably safer to bury cash in the backyard than to put it in the bank.
I could begin collecting Social Security in a couple of years. My question is this:
If I renounce my "right" to ever collect anything from Social Security right now, will I be allowed to live till I die from natural causes?
This is already happening in Calif. There are numerous immigrants collecting SS benefits without paying a dime into the system. My Mom and I have discuss this at length as to how it is possible for them to collect on SS without having ever worked in this country. We can't figure how they are eligible.
I have been hearing that the SS system was going to crash for years and years. Because of this, my hubby and I have planned our retirement as if we won't be getting a dime out of the system. If SS happen to be solvent for us to collect on it then it will be gravy money for us. That is the only reasonable way to plan for a retirement these days.
It doesn't work that way. Government wants to tax us into homeless and starvation and give all the money to those who are destroying the U.S.
If anyone doesn't believe me, just ask yourself why the IRS income tax is so complex. The answer is simple, it is complex so it can be used to hurt (non-limo-liberal) U.S. citizens, I.E. us.
I am mid 40s and am tired of paying into this scheme. I would be willing to let them keep everything they have taken towards SS so far without giving me a dime if they would just leave me alone and let me keep my money from now on. Too bad I won't get that option.
Ding, ding, ding, we have a winnah!
Same here. And what really frosts me is that while SS is going down the tubes, gubbermint workers are guaranteed generous retirement benefits. In Cali and other states, many public workers can now retire at 50 or 55 with large pensions and lifetime medical coverage.
Or buy more firearms!
Having your investments/savings in firearms and ammo maybe a sane idea along as you do it and store your firearms in a very progun/pro 2nd Amendment State/Town.
We're safe! lol