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Old 11-10-2018, 10:42 AM
 
Location: Central New Jersey
2,384 posts, read 910,301 times
Reputation: 4219

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Nobody should rely on SS in their golden years. If your not saving while your young, thats laziness on your part.
Depends how people wanna live later on. Comfortably or month to month SS check?
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Old 11-10-2018, 11:07 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,169,984 times
Reputation: 6691
We did not intend to rely on SS to retire but due to a string of circumstances which I will not go into, that is exactly how it turned out.
We have zero other money than our monthly SS checks and so we were in fact SAVED by SS.
I also thought that by the time we got to SS age there would be nothing left either. Or that they would do away with Spousal benefits. I was a stay at home mom and then became a disabled mom, but got no benefits for that because I had not worked, but fortunately I did still qualify for those spousal benefits by the time I reached retirement age.
Besides non working stay at home mom's were exactly the people that spousal was originally created for. If not for SS I would probably be dead by now.
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Old 11-10-2018, 03:40 PM
 
Location: NC Piedmont
3,911 posts, read 2,877,558 times
Reputation: 6291
I think the best way to sum it up is that SS is not a retirement plan, it is insurance against running out of money. In other words, you will have a hard time using it alone to finance a plan that is more than a meager existence but it will keep you from having to live in the street.
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Old 11-10-2018, 09:05 PM
 
Location: Ohio
19,903 posts, read 14,228,365 times
Reputation: 16083
Quote:
Originally Posted by Rocko20 View Post
Interesting article that illustrates how social security can still survive the upcoming baby boomer retirement. But I think the point should still be that millennials shouldn't depend on SS to save them.
Great, another propaganda and disinformation article from USless Today.

No one ever said Social Security would run out of money.

The claim has always been that the OASI Trust Fund would be depleted, and the revenues generated would not be sufficient to cover payouts, resulting in a reduction of 25%-35%.

That means is if your monthly check is $2,000 it will be reduced to $1,300 to $1,500.

To suggest that the taxation of benefits is going to save Social Security is absurd.

In September, Social Security fell short again, with losses of $9.2 Billion, even while taxing benefits. That's better than August, where you lost $15.1 Billion.

The amount collected from the taxation of benefits in September? A whopping $18 Million.

Do you know what that will cover? It will pay 12,820 beneficiaries one month of benefits.

The author of the article is quite ignorant.

Quote:
Originally Posted by augiedogie View Post
There is no hoard of cash in a SS trust fund. The Fed govt is 20 Billion dollars in debt. Back during the LBJ administration, SS and the Fed. Budget were combined, so whatever the news tells you about a SS trust fund is a lie. Its only an acconting trick. The whole Fed govt and SS are 20 Billion in debt.
More propaganda and disinformation.

Why don't you read the 1939 Amendments to the Social Security Act of 1935.

It states quite clearly in no uncertain terms that any surplus FICA payroll tax revenues are to be transferred to the General Fund and a special treasury security issued in its place.

Note that conversion of the special treasury securities decreases the government debt, and increases the public debt, but does not increase the federal debt.

On top of that, note that the interest on the special treasury securities is higher than the interest of treasury bills, bonds and notes, so that it costs less to service the debt after it has been converted.

Quote:
Originally Posted by pvande55 View Post
It is estimated that benefits will be 75% of promised amount if Congress does nothing. Nobody expects that, they will take action shortly before then. The most obvious reform would be to eliminate the wage cap. That plus a slight increase in the rate and a small reduction in benefits would secure the system. What the Congress of 2038 will do is anyone's guess.
As been proven, eliminating the Social Security wage cap will only generate $126 Billion per year.

In a few short years, Social Security monthly benefit payments will be $129 Billion per month.

$126 Billion ≠ $129 Billion

So people get 97% of their benefits for one month, then 65%-75% of their benefits for the other 11 months.

That's not exactly "winning."

In 1983, you could "get away" with a 0.3% FICA payroll tax increase each for employers and employees, but that's because you were only paying out $12.4 Billion per month, and because the ratio of workers to beneficiaries was 3.2:1, and because your monthly short-fall was only 4%.

A 0.3% bump at the last minute won't get it, because you'll be paying $129 Billion per month, you have a ratio of 2.2:1 workers to beneficiaries, and the short-fall will be 25%-35%.

The FICA payroll tax will have to be increased 1.8%-2.2% without or without eliminating the wage cap.
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Old 11-11-2018, 02:55 AM
 
71,517 posts, read 71,694,121 times
Reputation: 49095
Furthermore the funds during the LBJ years were never actually mixed in with the general funds .
On paper only ,they combined the ss surplus with the general funds to make the asset side of the balance sheet look better so he could get funding for Vietnam . The ss funds were never mixed in with the general funds .

Those special treasuries which ss buys have never defaulted and regularly pay principal and interest as expected .

It is the only thing the money can buy . If the govt started buying stocks they would be owning private business and that is communism.

At the 11th hour ss will be fully funded by Congress . You can bet on that .we find trillions for wars ,foreign aid and farmers so this is a drop in the bucket
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Old 11-11-2018, 04:15 AM
 
1,137 posts, read 569,749 times
Reputation: 4370
Quote:
Originally Posted by joee5 View Post
Nobody should rely on SS in their golden years. If your not saving while your young, thats laziness on your part.
Depends how people wanna live later on. Comfortably or month to month SS check?
You forgot comfortably on an SS check.
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Old 11-11-2018, 04:18 AM
 
2,443 posts, read 2,070,283 times
Reputation: 5690
I don't think most posters on this forum will ever see social security dry up. Now I can see some type of new plan being implemented for people born today. Perhaps some type of tax free savings account similar to a Roth but with the tax advantages of a regular IRA. Meaning a reduction in taxable income.

I just don't think a President and congress would dare just say no more SS go those who have paid into it for years. There would be a run on capitol hill with a lot of angry senior citizens. Not to mention all of them being voted out.
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Old 11-11-2018, 04:20 AM
 
2,443 posts, read 2,070,283 times
Reputation: 5690
Quote:
Originally Posted by mathjak107 View Post
Furthermore the funds during the LBJ years were never actually mixed in with the general funds .
On paper only ,they combined the ss surplus with the general funds to make the asset side of the balance sheet look better so he could get funding for Vietnam . The ss funds were never mixed in with the general funds .

Those special treasuries which ss buys have never defaulted and regularly pay principal and interest as expected .

It is the only thing the money can buy . If the govt started buying stocks they would be owning private business and that is communism.

At the 11th hour ss will be fully funded by Congress . You can bet on that .we find trillions for wars ,foreign aid and farmers so this is a drop in the bucket
My thoughts exactly. Good post
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Old 11-11-2018, 04:23 AM
 
71,517 posts, read 71,694,121 times
Reputation: 49095
Medicare is the real issue . That has big financial issues . I worry our Medicare and supplements will end up like crappy regular health insurance.

I kiss the ground now that I am on Medicare and no longer have to deal with 5k deductibles and 5 digit premiums for us
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Old 11-11-2018, 04:24 AM
 
2,443 posts, read 2,070,283 times
Reputation: 5690
Quote:
Originally Posted by Mircea View Post
Great, another propaganda and disinformation article from USless Today.

No one ever said Social Security would run out of money.

The claim has always been that the OASI Trust Fund would be depleted, and the revenues generated would not be sufficient to cover payouts, resulting in a reduction of 25%-35%.

That means is if your monthly check is $2,000 it will be reduced to $1,300 to $1,500.

To suggest that the taxation of benefits is going to save Social Security is absurd.

In September, Social Security fell short again, with losses of $9.2 Billion, even while taxing benefits. That's better than August, where you lost $15.1 Billion.

The amount collected from the taxation of benefits in September? A whopping $18 Million.

Do you know what that will cover? It will pay 12,820 beneficiaries one month of benefits.

The author of the article is quite ignorant.



More propaganda and disinformation.

Why don't you read the 1939 Amendments to the Social Security Act of 1935.

It states quite clearly in no uncertain terms that any surplus FICA payroll tax revenues are to be transferred to the General Fund and a special treasury security issued in its place.

Note that conversion of the special treasury securities decreases the government debt, and increases the public debt, but does not increase the federal debt.

On top of that, note that the interest on the special treasury securities is higher than the interest of treasury bills, bonds and notes, so that it costs less to service the debt after it has been converted.



As been proven, eliminating the Social Security wage cap will only generate $126 Billion per year.

In a few short years, Social Security monthly benefit payments will be $129 Billion per month.

$126 Billion ≠ $129 Billion

So people get 97% of their benefits for one month, then 65%-75% of their benefits for the other 11 months.

That's not exactly "winning."

In 1983, you could "get away" with a 0.3% FICA payroll tax increase each for employers and employees, but that's because you were only paying out $12.4 Billion per month, and because the ratio of workers to beneficiaries was 3.2:1, and because your monthly short-fall was only 4%.

A 0.3% bump at the last minute won't get it, because you'll be paying $129 Billion per month, you have a ratio of 2.2:1 workers to beneficiaries, and the short-fall will be 25%-35%.

The FICA payroll tax will have to be increased 1.8%-2.2% without or without eliminating the wage cap.
Exactly right FICA will keep going to up to support FICA. Is it a Ponzi scheme, yes it is. Then again if the government would not have raided SS years ago and let the account grow on a simple savings account, it would be huge by now. Stealing is illegal in the USA unless of course you are the government.
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