Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Paper Argues Social Security Shortfall Is Easily Fixable
Old 12-11-2011, 08:58 AM   #1
Recycles dryer sheets
Join Date: Oct 2011
Posts: 106
Paper Argues Social Security Shortfall Is Easily Fixable

I stumbled upon this and thought others might like to read it.

sunsnow is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-11-2011, 09:28 AM   #2
Thinks s/he gets paid by the post
Htown Harry's Avatar
Join Date: May 2007
Posts: 1,517
Thanks for posting.

The "problem" is indeed manageable. The paper notes +1% increases in the employee and employer rates would erase the future deficit immediately:

Over the next 75 years, Social Security’s long-run deficit is projected to equal 2.22 percent of covered payroll earnings. That figure means that if payroll taxes were raised immediately by 2.22 percentage points – 1.11 percentage points each for the employee and the employer – the government would be able to pay the current package of benefits for everyone who reaches retirement age at least through 2085.
Besides increasing contribution rates, modest changes involving benefits or eligibility or the cap on taxable SS earnings are also capable of contributing to shoring the program up.

As I said in a post many months ago regarding a Senate Committee on Aging report on SS with many different options weighed and discussed:
Social Security Needs Small "Tweaks"
Dear Congress:

Please pick 10 changes from the list that will have the effect of spreading the following actions across the widest possible spectrum of the population:
  • Pay a bit more now
  • Get a bit less later
  • Wait a little longer to get it
Move it along without delay, please, so you can move on to more challenging fiscal issues. Feel free to skip the hysterical speeches and politicking - I value solvency and stability in the system many times more than whether my payments or benefits might change a few percentage points.


Htown Harry is offline   Reply With Quote
Old 12-11-2011, 09:38 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
Join Date: Jan 2008
Location: LKN
Posts: 13,816
Originally Posted by Htown Harry View Post
The "problem" is indeed manageable. The paper notes +1% increases in the employee and employer rates would erase the future deficit immediately.
But politicians are afraid to even restore the 2% holiday, much less increase another 1% or 3% total. They know a large chunk of the electorate will pummel them if they even talk about touching SS much less actually doing something.

And I have a hard time compartmentalizing SS, knowing that we have large deficits and Medicare won't be as easily solved cost wise. We need to come to grips with entitlements (or whatever word you prefer), to preserve them at a sustainable level.
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 45% equity funds / 30% bond funds / 25% cash - radically changed Nov 2018
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
How Do I Maximize My Future Social Security Benefits? nico08 FIRE and Money 18 10-22-2011 09:31 AM
Net Present Value of State Government Pension and Social Security Benefit nico08 FIRE and Money 19 08-21-2011 11:44 PM
DIY Replacement for Social Security or DBP kyounge1956 FIRE and Money 21 08-07-2011 06:41 AM

» Quick Links

All times are GMT -6. The time now is 12:09 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.