You obviusly have information I can use
IF we suddenly stopped paying out SS ... CAN we recover to SS solvency, and if so ... when
I'm sure it's an academic excersize, but ... can it be done ?
[[IF we suddenly stopped paying out SS ... CAN we recover to SS solvency, and if so ... when ]]
We shouldn’t have to- SS supposedly was ‘insolvent’ back I nthe 70’s and congress ‘fixed’ the problem then- It was supposedly running in deficit- not surplus
In 2012 we had a $54 billion dollar surplus- (not sure hwat the surplus is today)
The unfunded liability for Social Security is estimated to be about 27 trillion, or about 10 times the current Trust fund.
In 2014, about $786 billion was collected in payroll taxes and income taxes on benefits.
Starting with the current Trust Fund balance of $2.764B and presuming an annual dividend rate of 4%, it would require 19 years to build that balance to over $27 Trillion.
But once again, Social Security won't simply go bankrupt. They will just lower benefit payments to whatever can be sustained with the incoming taxes. But, how they would do it is anyone's guess.
My suggestion: plan for a reduction of at least 20% in 2030. That's what I'm doing.