|
2017 OASDI Trustees Report
07-15-2017, 08:57 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,496
|
2017 OASDI Trustees Report
The newest SS trustees report is out: https://www.ssa.gov/oact/TR/2017/index.html
This summary says that to maintain solvency cuts could range from 23% in 2034 growing to 27% in 2091. https://finance.yahoo.com/news/socia...175058898.html Though I don't see those actual estimates in the trustees report summary.
It's all good - I've been using a 30% haircut in my estimates and I'll start collecting before 2034.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
|
|
|
|
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 Early-Retirement.org 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!
|
07-15-2017, 10:54 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
|
Quote:
Originally Posted by USGrant1962
|
I would rather no cut until 2050 or so, then 100% cut....
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
|
|
|
07-16-2017, 05:37 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,328
|
Quote:
Originally Posted by USGrant1962
It's all good - I've been using a 30% haircut in my estimates and I'll start collecting before 2034.
|
Based on current law (the debt ceiling) US treasuries will default or would need to take a substantial haircut imminently. Yet we don't lose sleep that this will happen even though the idiots on the Hill are more likely to precipitate a crisis on the ceiling than on SS. So why discount anticipated SS by the current shortfall? It could continue to pay out as planned, be cut 25%, payout more, be completely completely abolished, or be reduced by some different factor. I would guess it might be tinkered with (e.g. chained CPI) but not much more. But in reality, who knows?
__________________
Idleness is fatal only to the mediocre -- Albert Camus
|
|
|
07-16-2017, 07:09 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,544
|
Quote:
Originally Posted by Senator
I would rather no cut until 2050 or so, then 100% cut....
|
2055 just to be safe. I won't see 91.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
|
|
|
07-16-2017, 07:27 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Hog Mountian
Posts: 2,077
|
Quote:
Originally Posted by donheff
Based on current law (the debt ceiling) US treasuries will default or would need to take a substantial haircut imminently. Yet we don't lose sleep that this will happen even though the idiots on the Hill are more likely to precipitate a crisis on the ceiling than on SS. So why discount anticipated SS by the current shortfall? It could continue to pay out as planned, be cut 25%, payout more, be completely completely abolished, or be reduced by some different factor. I would guess it might be tinkered with (e.g. chained CPI) but not much more. But in reality, who knows?
|
While I plan for the potential haircut, I believe it to be very unlikely. Unlike the debt /debt ceiling crisis (which is unfortunately, at best, abstract to most Americans), SSI is very concrete to recipients and near recipients. These folks are the ones who show up for elections, including primaries, off season, special etc. And politicians fears one thing and one thing only - losing their seat at the trough. So, I suspect we'll come out okay, but only due to the greed and self-interest of our "public servants."
__________________
Never let yesterday use up too much of today.
W. Rogers
|
|
|
07-16-2017, 07:50 AM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
|
I don't see SS being cut. There's plenty of time to fix things and the fixes are not all that difficult. But the US Government is not going to let down the millions of people who put money into the system and will need to rely on it to have a secure retirement.
It would be nice if they addressed it now rather than waiting until the last minute. But history tells us that our government is great at procrastinating, but when their backs are against the wall they figure out a solution, or at least a way to kick the can down the road.
|
|
|
07-16-2017, 07:58 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,496
|
Quote:
Originally Posted by donheff
So why discount anticipated SS by the current shortfall? It could continue to pay out as planned, be cut 25%, payout more, be completely completely abolished, or be reduced by some different factor.
|
I discount mostly because I can, it's one of a number of conservative assumptions when I run FIRECalc and other forecasts. I don't think elimination is realistic so I don't ignore it (many here do), but some tinkering is likely. Maybe they will fiddle with CPI plus fiddle with SS taxation plus fiddle with means testing? Who knows?
Also as a married couple it kind of splits the difference should one of us pass away early.
Discounting also accounts for the ER aspect where your SS statement assumes you keep working until you collect. The math I've seen makes for only a small discount, but I consider it part of the 30%.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
|
|
|
07-16-2017, 09:45 AM
|
#8
|
Recycles dryer sheets
Join Date: Oct 2015
Posts: 124
|
I guess I am like others here - use ~ 1/3 reduction in SS for retirement planning, but I really don't think that this will happen.
People who collect SS vote in higher percentages than almost any other age group.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|