Social Security could be big chill for 50-somethings

yahoo news ^ | 11-28-05 | susan page

[LouAvul]

.....snip.....

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.

[af_vet_rr]

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.

I am not going to be in for any "unwelcome suprises" - My wife and I made the decision long ago to consider the SS we recieve to be simply spending money, and not something to depend upon.

My best advice for a kid coming out of high school or college - forget about SS, don't even think about how much you put in versus how much you think you'll get out, and don't even assume you'll get any out.

[BigTom85]

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..

[jacquej]

Does this mean I better smoke like a chimney, and drink like a fish, get fat, and have dangerous sex?

Just wondering, you know!

[Fintan]

Does this mean I better smoke like a chimney, and drink like a fish, get fat, and have dangerous sex?

 

I've been working studiously all my life on all four and have mastered only two. So much for my 401k...

[Dont_Tread_On_Me_888]

It won't be hard to gather enough like minded people like you and do what our Founding Fathers did 200 years ago.

[msf92497]

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.

[Niuhuru]

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.

[chas1776]

Just watch you money does not lose its value by inflation.

[Euro-American Scum]

No. By then native english speakers will be the minority. Then we will be a protected class, right???

English speaking native born Americans will never be a protected class. Never.

[msf92497]

Hey, that's not fair.

"Do over!"

[Bekki4Bush]

Well I am 55 and not counting on anything from the government. Anyone who has not saved, invested, worked 2-3 jobs to do so, had better plan on working until 70-75.

we however, as good boot strap conservatives, have always lived BELOW our means....heaven forbid!, worked many hours in our own business AFTER working for our employers, and are now retired from our employers and working...a few hours a week in our own business and enjoying life.

I am amazed at all the bellyaching on a conservative website about social security. Conservatives DO NOT depend on govt. for their future!

[Lancey Howard]

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.

[msf92497]

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.

[henderson field]

I assume that if they cut social security they will also cut congressional and other government pensions, in the spirit of fairness.

[jacquej]

I want some of what you are smoking!

[PerConPat]

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.

I hear you. But if the checks are on time, I'd bet dollars to donuts that the payouts will be means tested.

[gas0linealley]

"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.

[GOPJ]

Social Security is the new welfare. The folks breaking the bank start collecting when their 30...

[kabar]

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).

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.