U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-17-2018, 10:09 AM
 
Location: Podunk, IA
4,015 posts, read 1,814,342 times
Reputation: 4289

Advertisements

Quote:
Originally Posted by Petunia 100 View Post
So far as I am aware, there is not one single member of Congress supporting this idea.
Major changes would have to be phased in over decades. I'm going to collect my SS and won't be around to see it.

Last edited by eaton53; 11-17-2018 at 10:19 AM..
Reply With Quote Quick reply to this message

 
Old 11-17-2018, 10:45 AM
 
8,849 posts, read 5,132,953 times
Reputation: 10118
Quote:
Originally Posted by eaton53 View Post
Major changes would have to be phased in over decades. I'm going to collect my SS and won't be around to see it.
Do you feel it is likely we will simply stop collecting Fica-SS and cut off all current annuitants?
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 10:50 AM
 
Location: San Diego, CA
495 posts, read 382,497 times
Reputation: 1217
No need to speculate, the Board of Trustees spells it out in their annual report:

"The OASI Trust Fund and DI Trust Fund are projected to have sufficient reserves to pay full benefits on time until 2035 and 2028, respectively...continuing income to the trust funds at the time of reserve depletion would be sufficient to pay 75 percent of OASI benefits and 93 percent of DI benefits."

In other words - as soon as the earliest Gen-Xers reach retirement age (and, conveniently, when Baby Boomers can expect to no longer need to worry about this - given the current life expectancy of about 79 years), the reserves are gone...and those retiring Gen-Xers can expect to collect 75% of what their predecessors received. For Millennials, they can expect to collect 73%.
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 11:02 AM
 
71,563 posts, read 71,730,589 times
Reputation: 49156
the current life expectancy for seniors is not 79 . that is from birth which is not relevant .that includes infant death , the sickly ,the weak ,the accident prone , druggies ,etc .

for a 65 year old man odds of seeing 85 are 42% , odds for a woman is 54% but for one in a couple it is a whopping 73% . in fact for a couple the odds of one seeing 90 is just below 50%. these numbers are a far cry from the 79 at birth , which is the 50% point where 1/2 go on and 1/2 die.

remember even from birth , it isn't you hit 79 and keel over and die . that is only the 50% point

Reply With Quote Quick reply to this message
 
Old 11-17-2018, 11:18 AM
 
Location: North Beach, MD on the Chesapeake
33,889 posts, read 42,123,479 times
Reputation: 43295
Quote:
Originally Posted by jasperhobbs View Post
Yes you are correct, pension plans like the old days are gone. Actually fewer and fewer companies even offer a pension.
A chicken/egg question: did traditional pensions become less common because employees started to switch jobs more frequently or did they switch jobs because pensions started to be phased out?

I'm bolding the following: At their greatest coverage traditional pension plans covered less than 40% of the work force.
https://www.fool.com/investing/2018/...ve-for-re.aspx


Quote:
Originally Posted by eaton53 View Post
Major changes would have to be phased in over decades. I'm going to collect my SS and won't be around to see it.
Which is what happened beginning around 1983. The FRA was increased gradually for those born after around 1950, among other changes.
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 11:26 AM
 
Location: Podunk, IA
4,015 posts, read 1,814,342 times
Reputation: 4289
Quote:
Originally Posted by Petunia 100 View Post
Do you feel it is likely we will simply stop collecting Fica-SS and cut off all current annuitants?
Absolutely not.
They'll fix it, but will wait until the last possible moment.
Don't expect anything to happen for quite some time.
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 11:29 AM
 
71,563 posts, read 71,730,589 times
Reputation: 49156
nothing gets fixed until the 11th hour
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 11:40 AM
 
Location: San Diego, CA
495 posts, read 382,497 times
Reputation: 1217
Quote:
Originally Posted by eaton53 View Post
Absolutely not.
They'll fix it, but will wait until the last possible moment.
Don't expect anything to happen for quite some time.
Unfortunately, I suspect this is spot-on.

Knowing our politicians, the can will be kicked down the road until the crisis occurs in about 17 more years. Taking action NOW for something that won't manifest itself for another 17 years would require Leadership and foresight - if you think our politicians have those virtues, I have a bridge in Brooklyn I'd like to sell you...

From the same Trustee report I linked to earlier:
"The 75-year actuarial deficit for the combined trust funds under the intermediate assumptions is 2.83 percent of taxable payroll...to remain fully solvent throughout the 75-year projection period: (1) revenues would have to be increased by an amount equivalent to an immediate and permanent payroll tax rate increase of 2.76 percentage points...(2) scheduled benefits would have to be reduced by an amount equivalent to an immediate and permanent reduction of about 17 percent applied to all current and future beneficiaries, or about 20 percent if the reductions were applied only to those who become initially eligible for benefits in 2017 or later; or (3) some combination of these approaches would have to be adopted. If actions are deferred for several years, the changes necessary to maintain Social Security solvency become concentrated on fewer years and fewer generations...The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them. Implementing changes sooner rather than later would allow more generations to share in the needed revenue increases or reductions in scheduled benefits and could pre- serve more trust fund reserves to help finance future benefits."
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 12:07 PM
 
3,731 posts, read 2,138,769 times
Reputation: 4319
Quote:
Originally Posted by Petunia 100 View Post
The only way it won't be around is if we stop collecting the payroll (and other) taxes which support it. So far as I am aware, there is not one single member of Congress supporting this idea.

Throughout the entirety of my working career, I have been unhappy with paying the SS deductions from my paycheck. I wish that Millennials and Generation Z were allowed to opt out of SS deductions. I remember being upset as a teenager about SS deductions. No one in Congress has ever supported the idea.
Reply With Quote Quick reply to this message
 
Old 11-17-2018, 01:01 PM
 
71,563 posts, read 71,730,589 times
Reputation: 49156
good thing they can't . most americans are awful investors and even worse savers
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top