SS Could Be Insolvent in 8 Years

[MichaelB]

Let’s all practice some social distancing with this topic and prevent it from being infected with Covid.

 

[TriumphTR3fan]

Let’s all practice some social distancing with this topic and prevent it from being infected with Covid.

^^^^^^ Great suggestion.

 

[Dtail]

+1
Not something I am going to worry about. Too many other things to think about like what flavor of ice cream I'm buying next.


Cheers!

There you go.

 

[Andre1969]

Is there also a possibility that, if there is eventually a shortfall, they simply try to make up the difference out of the general fund, or whatever they call it? Basically, just ramp up the printing presses and let the good times roll!

Of course, if you think the National Debt is bad now, this would be like a "Hold mah beer an' watch THIS!" moment. But, that doesn't seem to be bothering too many people, for the moment at least.

 

[RobbieB]

Sky is falling!

 

[NW-Bound]

Wait, I thought half of those over the age of 65 already died from COVID!!!! Aren't there fewer SS checks going out?

But, but, but the headlines also say fewer people work now. They all take ER, and don't want to pay into SS anymore.

 

[Time2]

But right by whose books?

Raise tax rate - people who pay tax don't like it.

Raise retirement age - people who are relying on SS to retire don't like it.

Raise the cap - I like it because I am not working, but ask those who work. But I think this is the least painful option. However, in the current formula, if you raise the cap, it means that the total cap will have to raise to pay out more to the high income earners who contributed to the system for the full 35 years. Unless there is no change to the total cap, then they don't get more SS back despite paying more into the system.

Reduce COLA - it is already a problem for retirees because COLA is insufficient to cover their health care cost increase.

So, for me, raise the cap should be the way to go. But I am just a little person behind the screen with a keyboard here.

That's why I suggested them all, a little misery for everybody. I usually have 5 ideas, but couldn't come up with the fifth and still haven't.

 

[Love This Community]

Looks like the general consensus here is that Ss is not going to go away or significantly reduced in the future. However, when we read about individual retirement plans, some forum members are not counting on SS being available. Are they being too conservative? Curious to know.

 

[timbervest]

Government will:

• continue to pay to current payees

Government may:

• raise the income cap
• slowly raise the retirement age (70)? for the young wage earners
• adjust the bend points
• (possibly) raise the payroll tax but most likely only on the employer side

Government will not:

• Cut benefits for recipients in pay status

 

[harllee]

It would be political suicide for any politician to vote to reduce payouts to current SS recipients. Us old geezers vote big time.

 

[disneysteve]

Looks like the general consensus here is that Ss is not going to go away or significantly reduced in the future. However, when we read about individual retirement plans, some forum members are not counting on SS being available. Are they being too conservative? Curious to know.

Great point. I'm one who never included SS in my retirement planning until the past year (I just turned 57). It was too much of an unknown earlier on. And far better to over-save than under-save. If we could manage fine without SS, than we'd be in extra good shape with SS. Now that retirement is close (within a year or so), I've started including SS in my projections.

 

[daylatedollarshort]

It would be political suicide for any politician to vote to reduce payouts to current SS recipients. Us old geezers vote big time.

That is why they use terms like chained CPI instead of benefit cuts. Benefits have been tweaked, including cuts, in many ways over the years, like raising taxes on benefits and then putting the tax money back into the SS trust fund. The taxable thresholds set up in 1984 aren't indexed to inflation, so that is another subtle way benefits are cut each year for many retirees.

 

[marko]

Yes! Many people have told me that SS would soon be insolvent. Only a few years left.

Oh wait! That was 56 years ago when I first entered the workforce.

Never mind.

 

[JackJester]

marketwatch sucks. click bait central

 

[bolt]

I'm often camfused myself, seems you are also.

These SS insolvencies happen often. I hope you recall, if not, i'd see a Dr. hoping my memories fine.
Im not kidding.
This is a repetitive topic, akin to focused inflationary discussions.

Kick the can!

Good luck & Best wishes...

 

[camfused]

^^^ Hold, on. I did not say I agreed with the article, I just posted it as a news item of interest for this forum, since the person was taking an "educated" guess at the new haircut date. I suspect we will get the official report from SS pretty soon.

I know that SS will not "run out" of money, and I believe that (at the last possible moment), congress etc will do *something* to make sure that benefits do not get cut (much) for us retired folks.

My apologies for posting this thread. I'll go away for awhile now.

 

[Markola]

^^^^^^ No worries, though tonight might not be a good time to ask the forum, “Hey, should I pay off my mortgage?” [emoji897]

 

[Markola]

Looks like the general consensus here is that Ss is not going to go away or significantly reduced in the future. However, when we read about individual retirement plans, some forum members are not counting on SS being available. Are they being too conservative? Curious to know.

Yes, some forum members are reflexively and habitually highly financially conservative, aiming for 100% confidence in the success of their projections, though 200 or 300% confident would be even better. YMMV.

 

[daylatedollarshort]

Yes, some forum members are reflexively and habitually highly financially conservative, aiming for 100% confidence in the success of their projections, though 200 or 300% confident would be even better. YMMV.

Michael Kitces says that, "a maximum Social Security benefit of $2,642/month (for those who maxxed out the Social Security wage base for 35 years), the value of Social Security amounts to about $572,000 for men and $683,000 for women". Good for all the posters who aren't counting on SS in their retirement calculations, but we sure don't have the kind of savings to ignore SS amounts worth seven figures in our planning.

 

[youbet]

Government will:

• continue to pay to current payees

Government may:

• raise the income cap
• slowly raise the retirement age (70)? for the young wage earners
• adjust the bend points
• (possibly) raise the payroll tax but most likely only on the employer side

Government will not:

• Cut benefits for recipients in pay status

Government will:

Require current recipients to die and stop collecting when their accumulated received benefits = their lifetime contributions withdrawn at 4% + inflation rate.

 

[youbet]

Michael Kitces says that, "a maximum Social Security benefit of $2,642/month (for those who maxxed out the Social Security wage base for 35 years), the value of Social Security amounts to about $572,000 for men and $683,000 for women". Good for all the posters who aren't counting on SS in their retirement calculations, but we sure don't have the kind of savings to ignore SS amounts worth seven figures in our planning.

Did you mean six figures? Or are you combining two benefits as a couple?

 

[timbervest]

Government will:

Require current recipients to die and stop collecting when their accumulated received benefits = their lifetime contributions withdrawn at 4% + inflation rate.

Don't give them ideas!!!!

 

[daylatedollarshort]

Did you mean six figures? Or are you combining two benefits as a couple?

Sorry, I should have clarified I meant for a couple.

 

[teejayevans]

The government will just eliminate the “trust fund “ concept and simply treat SS like Medicare or any other program and make it a regular budget line item.

 

[Dtail]

Michael Kitces says that, "a maximum Social Security benefit of $2,642/month (for those who maxxed out the Social Security wage base for 35 years), the value of Social Security amounts to about $572,000 for men and $683,000 for women". Good for all the posters who aren't counting on SS in their retirement calculations, but we sure don't have the kind of savings to ignore SS amounts worth seven figures in our planning.

Same here. Retirement doesn't work out for us without any SS.