The Future of SS

[mickeyd]

What to do? SS can not last in it's present structure. Here are a number of options that may, or may not, solve this problem that clearly has to be fixed soon. Politics must surely complicate the final salvation of the SSA program. These are not new solutions, but article clearly states them.

The future of Social Security in the United States is hotly contested. Both current and future retirees are concerned that the Social Security benefits they’ve been promised won’t be there and should be excluded from their financial plans. We’re going to examine some of the popular notions of Social Security reform and whether financial planners should include Social Security in their clients’ plans.

https://onefpablog.org/2019/04/04/s...um=email&utm_campaign=blog&utm_content=123019

 

[Sunset]

(IMHO).

Without fixing, it's still worth about 80% in about roughly 12 years, which is still a lot of value (food, medicare costs) for people.

Politicians need to fix it. That is their job. Without a fix, they should not get any pensions or re-election.

 

[youbet]

Politicians need to fix it. That is their job. Without a fix, they should not get any pensions or re-election.

Isn't the issue defining "fix it?" There are many ways to bring incoming revenue in line with outgoing benefit payments. But there will be winners and losers. Identifying who falls into which group is the problem.

I've heard numerous politicians suggest plans to "fix it," but there always seem to be other politicians who think that stinks and suggest their own plan is better. And, of course, no matter what is suggested, millions of citizens think it's unfair and the dumbest thing they've ever heard.

 

[GravitySucks]

Along with the politically suicidal bent to letting the benefit drop 20+ % I think it will have to be maintained to avoid deflation. The economic powers that be fear deflation more than inflation, armed geezers, or political turn over.

 

[Ian S]

The last time there was a major problem (early 80's), we got a lot closer to a crisis before actually doing something. The gloom and doom predicted then didn't come to pass. We'll muddle through again.

The real problems I see out further on the horizon are climate change and the effects of artificial intelligence on how we live and work. Both of these are apt to exacerbate the already disturbing worldwide trend towards authoritarianism.

 

[corn18]

The last time there was a major problem (early 80's), we got a lot closer to a crisis before actually doing something. The gloom and doom predicted then didn't come to pass. We'll muddle through again.

^^^^This. It really isn't any more complicated than that, although we will grouse about it endlessly just so we have something to worry about.

 

[JoeWras]

^^^^This. It really isn't any more complicated than that, although we will grouse about it endlessly just so we have something to worry about.

My guess is they'll fix it by attaching it to the "Plastic straw elimination act of 2030" or something like that. Much like what happened with the SECURE act a few weeks ago.

 

[gerntz]

My guess is they'll fix it by attaching it to the "Plastic straw elimination act of 2030" or something like that. Much like what happened with the SECURE act a few weeks ago.

 

[RobbieB]

Another thing I'm not going to worry about.

 

[dtbach]

Another thing I'm not going to worry about.

^
yup

 

[Walt34]

Another thing I'm not going to worry about.

Yup2.

 

[COcheesehead]

Deadlines spur action. I don’t expect much to happen until very near the end. With that being said there was a SS expert on Ric Edelman the other day who said at insolvency, it will still pay at an 80% rate. I can live with that.

 

[imoldernu]

We'll do just what we've been doing for the past three years.

Print more money.

 

[Midpack]

Another thing I'm not going to worry about.

It’s sad special interests prevent our politicians from doing anything proactive, but I’m sure they’ll act when there’s no choice (or all the AARP members pass away).

But our plan works (historically) without Soc Sec, so we’ll be happy with whatever we get if there’s anything left after it’s taxed...

 

[Mdlerth]

The previous 180 don't count?

We'll do just what we've been doing for the past three years.

Print more money.

Only three?

 

[foxfirev5]

Another thing I'm not going to worry about.

Exactly

 

[Another Reader]

Almost all my tenants have jobs. Only one currently relies on any unearned income from the federal government, and he's a disabled vet with a working spouse. People that have jobs usually pay their rent. Unless the entire economy collapses, I'm not worried about Social Security.

I'm far more worried about Medicare, with which I'm stuck. Big cuts with no legitimate way to private pay for medical care instead is much scarier.

 

[donheff]

I'm in the don't worry camp. SS isn't going anywhere. We have lots of much bigger problems to solve.

 

[Gallaher]

Yup2.

Yup 3

 

[Alexi]

House bill still stuck in committee - HR 860 - Social Security 2100 Act[/b]

The part where it increases the threshold amount where SS income becomes taxable [which was never indexed for inflation] should have been done years ago.

SEC. 104. Increase in threshold amounts and rate for inclusion of Social Security benefits in income

https://www.congress.gov/bill/116th-congress/house-bill/860/text

 

[11522914]

Yup 3

Yup 4

 

[Offgrid Organic Farmer]

I am certain that the formula for SS will be modified again. At least one more time, maybe a dozen more times.

With each modification, the ratio of how much we pay into it, vs. how much we get paid, will shrink.

My wife and I are not counting on getting SS.

I do not recommend for anyone to expect to get SS.

 

[ziggy29]

House bill still stuck in committee - HR 860 - Social Security 2100 Act

The part where it increases the threshold amount where SS income becomes taxable [which was never indexed for inflation] should have been done years ago.

SEC. 104. Increase in threshold amounts and rate for inclusion of Social Security benefits in income

https://www.congress.gov/bill/116th-congress/house-bill/860/text

It also does other things. It appears that it also reinstates SS taxes on earned income above $400,000 a year. (I guess that is how they pay for the inflation indexing among other things). So if this does not pass or the Senate would not take it up, it is probably because of that "tax increase" (which is, of course, offset by a tax decrease for those currently under that threshold who are paying tax on 85% of SS payments even with modest incomes).

As usual, these bills have a lot of moving parts, some of which may be favored by one faction and some of which are favored by the other faction.

I do not recommend for anyone to expect to get SS.

I expect to get it and I will not quietly accept having Lucy (Washington) pull the football away from Charlie Brown (me) just before he is about the kick the football (receive benefits). That said, I would agree that it is proactive and prudent financial planning to try to arrange your finances such that your retirement is not dependent on receiving SS as we have known it.

 

[corn18]

I do not recommend for anyone to expect to get SS.

Disagree. I hope to retire in 2 years at age 56. I am planning on SS. It's $58k a year of income @ age 70. Without that, I have to work forever. I am planning on benefits being reduced by 25%, though.

 

[USGrant1962]

I am certain that the formula for SS will be modified again. At least one more time, maybe a dozen more times.

With each modification, the ratio of how much we pay into it, vs. how much we get paid, will shrink.

My wife and I are not counting on getting SS.

I do not recommend for anyone to expect to get SS.

SS isn't going anywhere. Worst case you might get 77% of it. Planning on zero is poor planning and anti-ER.