SS Trust Fund to run dry sooner than anticipated

[obgyn65]

Social Security’s financial forecast gets darker; Medicare’s outlook unchanged - The Washington Post

The budget outlook for Social Security is getting dimmer, the US government said, with its primary trust fund now projected to run dry three years sooner than anticipated...

 

[Brett_Cameron]

This is not surprising given the reduced FICA contribution that employees have last year and this. Even with the increase in medicare tax in 2014 as part of the affordable care act, Medicare is underfunded/overspent.

 

[Steel Rain]

Im shocked really I am

Steel

 

[MasterBlaster]

This is not surprising given the reduced FICA contribution that employees have last year and this. Even with the increase in medicare tax in 2014 as part of the affordable care act, Medicare is underfunded/overspent.

In theory the reduced FICA amount was made up by the general fund. That should have no direct effect on SS solvency.

The accelerated solvency problems are driven by out-of-work people retiring to SS earlier than usual and more people out of work not contributing payroll taxes.

Another, under the radar cause is people out of work getting themselves declared "disabled" and going on permanent SS disability. This is the fastest growing part of the SS budget.

 

[BigE]

Every day I see healthy appearing person "scamming" the disability system. 40 yr olds with normal spines claiming back pain. Don't know just how pervasive this is (ie, don't have hard data on this), but it would appear that the nation of "food stamps" is also a nation of "I can't work, give me a monthly check" for my fibromyalgia". Please refrain from hate-mail, I know there are plenty of people who justifiably need SSDI, but those who don't are robbing the social security system (read: stealing from seniors).

 

[73ss454]

Scams like this should also push insolvency along.

My neighbor was an airline pilot and left his wife for a very young stewardess. They made some babies and then he retired. So now we pay him, his kids and don't forget the young wife SS bennies. This makes sense, no?

 

[ziggy29]

Please refrain from hate-mail, I know there are plenty of people who justifiably need SSDI, but those who don't are robbing the social security system (read: stealing from seniors).

To the extent this is perceived as "theft" it's not from seniors -- at least not today's seniors. To the extent this jeopardizes the solvency of the program, the burden will be carried by future generations of retirees who are today's workers.

 

[Ed_The_Gypsy]

From all accounts, it is reeeealy hard to get SSDI. Personally, I think there are other places where the gummint throws money away.

 

[Steel Rain]

To the extent this is perceived as "theft" it's not from seniors -- at least not today's seniors. To the extent this jeopardizes the solvency of the program, the burden will be carried by future generations of retirees who are today's workers.

Interestingly, there was an article in the WSJ, last week I think about this very topic. Apparently, the growth in the SSI disability program is vastly larger than the population as a whole. Dont remember the exact statistics but it does not surprise me in the least. I know serveral unempoyed folks who are turning down jobs to run the 99 weels dry. So, not surprising in the least.

Steel

 

[Steel Rain]

From all accounts, it is reeeealy hard to get SSDI. Personally, I think there are other places where the gummint throws money away.

No personal experience but when i see lawyers advertising on TV about how they can help this along, i know its a gold mine for them.

Steel

 

[brewer12345]

No personal experience but when i see lawyers advertising on TV about how they can help this along, i know its a gold mine for them.

Steel

The lawyers don't need to be successful for their clients in order to be raking it in.

 

[BigE]

I am continually shocked at how people are not aware of what goes on in the world around them. There is solid evidence on a daily basis of these scams, yet not only do we tolerate them, we pretend they are not real or downplay the magnitued. I just interpreted two disability xrays (chest and lumbar spine) in a 39 y.o female with an umbilical ring and they are both NORMAL. And guess who is paying for the xrays?
So yeah, I guess I must be imagining this stuff.

 

[Steel Rain]

The lawyers don't need to be successful for their clients in order to be raking it in.

Not sure this is true, most of these "Ambulance Chasers" for lack of a better word, work on contingency. Someone who wants SSI, especailly if its marginal, probably does not have the means to pay hourly. I could be wrong though.

Steel

 

[eridanus]

There is solid evidence on a daily basis of these scams, yet not only do we tolerate them, we pretend they are not real or downplay the magnitued.

Well, present the solid evidence.

 

[brewer12345]

Not sure this is true, most of these "Ambulance Chasers" for lack of a better word, work on contingency. Someone who wants SSI, especailly if its marginal, probably does not have the means to pay hourly. I could be wrong though.

Steel

Please, enlighten us with data.

 

[BigE]

Solid is perhaps not the best word choice. For me personally, I try to watch the sources of info and the way things are presented as best I can to account for bias and spin. It was just too weird that after my first post, I encountered a healthy 39 year old seeking SSDI. This, IMHO seems like very real, tangible evidence supporting the above referenced Wall Street Journal article and the ongoing observations around me. This is just my opinion (which directly relates to the topic of SS solvency); if I was a disability lawyer or scammer, I'm sure I would see things differently.

 

[Steel Rain]

Please, enlighten us with data.

No data, but i believe its true. I dont see how a lawyer, especially from a firm that has a televising budget is going to make money hourly. My only experience is from the our real estate lawyer, and she charges 140/hr and its painful. I make a good living, but there is not way i could pay a lawyer hourly if that rate is anywhere near the norm. My money is on contingency

Steel

 

[brewer12345]

No data, but i believe its true.
Steel

How wonderful for you. You must be very proud.

 

[NYEXPAT]

Scams like this should also push insolvency along.

My neighbor was an airline pilot and left his wife for a very young stewardess. They made some babies and then he retired. So now we pay him, his kids and don't forget the young wife SS bennies. This makes sense, no?

Sound's like a good gig, especially if they all get travel benefits as well.

 

[73ss454]

Sound's like a good gig, especially if they all get travel benefits as well.

Don't forget his pension also.

 

[rodi]

I've witnessed the process to get SSI Disability first hand. My brother had terminal cancer, was undergoing chemo, could not work, so was on cobra - which my sister and I paid because he had no income. He applied for SSID, and they "fast tracked" it because he was terminal. He applied in Sept 07. He got the letter approving in in early Dec 07. It was set to start in March 08. He died in late Dec. 07. His case was extremely clear cut. He had an aggressive, inoperable, terminal cancer. No grey area. It still was more than 6 months (fast tracked) till it would kick in, from the application date.

As far as them reducing the SS payroll tax - I think it's stupid. And I'm still working/paying. I immediately jumped up my other savings by the same amount so I would be partially covered. I wish more people had.

I also wish they'd raise the wage cap that SS payroll tax hits. Currently you only pay on the first $110k. Raise that to $150k, or remove the cap (like medicare tax) and you'd have a solvent/funded system. And yes - again, this could affect me. It's the easiest fix... but it will never happen.

 

[REWahoo]

73, your neighbor is a lightweight at this money making plan compared to my maternal grandfather. When he turned 65 he had eight children under age 18. He had a total of 12 kids before the oldest turned 18 - grandpa was 72 when his youngest was born.

Only one small problem - SS wasn't enacted until three years after his death in 1932. Timing is everything...

 

[Steel Rain]

How wonderful for you. You must be very proud.

Sorry if i have offended you in some way. Just a friendly discussion, at least i thought so

Steel

 

[Bestwifeever]

Sorry if i have offended you in some way. Just a friendly discussion, at least i thought so

Steel

Friendly discussions about financial matters are always friendlier when they are helped along with data and sources vs. a gut feeling or anecdotes.

 

[misanman]

I know this is anecdotal but before we were married DW and I would attend her annual family reunion in another state (that will remain nameless). I was always amazed at how many of her relatives were on disability. I would guess 30% or so, but I could name several off the top. Not sure of the reasons as it was not obvious to the casual observer.

This was in sharp contrast to the community I grew up in for some reason