Social Security’s Finances Erode Further and Could Spell Benefit Cuts

[ttwtt78640]

More people are working and paying payroll taxes. The ratio of working people to retirees has decreased due to the baby boomers retirings and longer life expectancies.

The best solution is to reduce the monthly payment and implement means testing. The benefit should start at $1500 and drop from there based on your other retirement income. I mean you're retired, what the hell are you paying for anyway?

Retirees pay for shelter, utilities, medical care and food - just like everyone else.

Assuming that a retiree could live comfortably on $18K/year, the FTE of a job paying $8.65/hour, is a bit much. While SS retirement/disability benefits were intended to only be a ‘supplement’, many have little (or no) other income.

TSCL surveyed thousands of American seniors over the age of 62 who were eligible for their Social Security benefits for the Senior Survey 2025 and found that nearly three-quarters of seniors (73%) depend on Social Security for more than half their income, and about 39% depend on the program for the entirety of their income.

Nearly 22 Million Seniors Rely Solely on Social Security: Study

Nearly 22 million seniors—about 4 in 10—live on Social Security alone, finds new survey from The Senior Citizens League

401kspecialistmag.com

 

[ttwtt78640]

That was a very long time ago. I really can't see any other way around this.

IIRC, the SS ‘trust me’ fund’s balance wasn’t decreasing prior to 2021, thus the SS ‘crisis’ situation is a relatively recent occurrence.

Since 2021, the OASI Trust Fund has been drawing down reserves to finance benefits and will require increasing amounts of redemptions of trust fund securities during the next decade. The OASI Trust Fund has a projected reserve depletion date of 2033, the same year as in last year’s report.

https://www.ssa.gov/oact/trsum/#:~:text=Since%202021%2C%20the%20OASI%20Trust,as%20in%20last%20year's%20report.

 

[tharock220]

Retirees pay for shelter, utilities, medical care and food - just like everyone else.

Assuming that a retiree could live comfortably on $18K/year, the FTE of a job paying $8.65/hour, is a bit much. While SS retirement/disability benefits were intended to only be a ‘supplement’, many have little (or no) other income.

Nearly 22 Million Seniors Rely Solely on Social Security: Study

Nearly 22 million seniors—about 4 in 10—live on Social Security alone, finds new survey from The Senior Citizens League

401kspecialistmag.com

Then it's not time to retire. Retirement isn't something that magically a happens at 65. You retire when you're ready and able.

I would definitely be open to changing the number and increasing it incrementally yearly, but in my opinion, Social Security is supposed to provide the bare minimum for retirement. If you want to travel, have nice things, live a busy life, then those are the extras that fall on you to provide.

 

[ttwtt78640]

Then it's not time to retire. Retirement isn't something that magically a happens at 65. You retire when you're ready and able.

I was ready and able (at age 62) to semi-retire, based on my ‘promised’ SS benefit amount and part-time self-employment (as a handyman) income. As my SS benefit amount increased, I was able to gradually reduce my part-time income. Now, at age 71, I’m becoming less willing (or able) to work as many hours/month.

I would definitely be open to changing the number and increasing it incrementally yearly, but in my opinion, Social Security is supposed to provide the bare minimum for retirement. If you want to travel, have nice things, live a busy life, then those are the extras that fall on you to provide.

My current SS retirement benefit is about $2,200/month (net after the Medicare Part B premium). Dropping that to $1500/month (or $1,315 net after the Medicare Part B premium) would be a serous reduction in my ability to make ends meet and far from what I had planned for.

 

[Taylor]

Yep.

Boomers neglected to plan for when their generation would retire and now expect later generations to work longer and get less in return so they can collect.

Screw them.

Let the system fail.

It seems they'd rather go with the status quo - where the status quo is to make the problem even worse. This guy sums it up nicely with a take on the saying, "The beatings will continue until morale improves"

 

[TobyOne]

Its not an "if" its a when. SS is insolvent in the early to mid 2030s. It will have to be reformed. Current recipients and those close to retirement will probably be grandfathered in with the current benefit structure.....the young will have take a hit. Hopefully they didn't go to public schools and end up in food service.

Not accounting for potential impacts of Trump's tariffs and deportations which may worsen the picture, we're eight years from a 23% cut to benefits.

Social Security’s Finances Erode Further and Could Spell Benefit Cuts

 

[Visbek]

IIRC, the SS ‘trust me’ fund’s balance wasn’t decreasing prior to 2021, thus the SS ‘crisis’ situation is a relatively recent occurrence.

Sigh

There is no reason for twisting the name of the Trust Funds. Every penny borrowed from the SS Trust Funds has been repaid, with an interest rate set to the inflation rate. Every. Single. Penny.

All of the tax dollars that went into the Trust Fund were supposed to be used to pay for the program. It is now doing what those tax dollars were intended to do: Pay for benefits.

We should note that the Trust Fund was, in fact, a result of the federal government colleting more in taxes than it needed. As a result, it's just a redistribution from past taxpayers to the present.

True, SS was not drawing on the Trust Funds before 2021. But the government has known about this situation for a long time, as the SSA is directed to make annual reports based on the goal of SS being solvent for the next 75 years.

Of course, all of this is actually just a gigantic pile of bullshit, intended to snow the rubes.

There is no genuine fiscal reason to segregate taxes to specific programs. A tax is a tax is a tax, and there is nothing magical about payroll taxes which make it the only valid way to fund SS.

Logically, we should just eliminate all of this nonsense. Payroll taxes should be treated like any other form of revenue; SS should be paid out of general funds, like every other program. This "crisis" is fake. I really don't see why everyone seems to fall for this nonsense.

 

[Jezcoe]

Sigh

There is no reason for twisting the name of the Trust Funds. Every penny borrowed from the SS Trust Funds has been repaid, with an interest rate set to the inflation rate. Every. Single. Penny.

All of the tax dollars that went into the Trust Fund were supposed to be used to pay for the program. It is now doing what those tax dollars were intended to do: Pay for benefits.

We should note that the Trust Fund was, in fact, a result of the federal government colleting more in taxes than it needed. As a result, it's just a redistribution from past taxpayers to the present.

True, SS was not drawing on the Trust Funds before 2021. But the government has known about this situation for a long time, as the SSA is directed to make annual reports based on the goal of SS being solvent for the next 75 years.

Of course, all of this is actually just a gigantic pile of bullshit, intended to snow the rubes.

There is no genuine fiscal reason to segregate taxes to specific programs. A tax is a tax is a tax, and there is nothing magical about payroll taxes which make it the only valid way to fund SS.

Logically, we should just eliminate all of this nonsense. Payroll taxes should be treated like any other form of revenue; SS should be paid out of general funds, like every other program. This "crisis" is fake. I really don't see why everyone seems to fall for this nonsense.

It is a problem because one of the solutions is to privatize the system which would make Wall Street very rich at the expense of the populous.

 

[ttwtt78640]

Its not an "if" its a when. SS is insolvent in the early to mid 2030s. It will have to be reformed. Current recipients and those close to retirement will probably be grandfathered in with the current benefit structure.....the young will have take a hit. Hopefully they didn't go to public schools and end up in food service.

IMHO, that would be political suicide. There are far more current workers (SS contributors) than current (or near retirement) SS beneficiaries. The other problem is the time lag between when those not ‘grandfathered in’ reach their reduced SS benefit age, since no ‘savings’ would result until then and they would only gradually occur.

 

[tharock220]

I was ready and able (at age 62) to semi-retire, based on my ‘promised’ SS benefit amount and part-time self-employment (as a handyman) income. As my SS benefit amount increased, I was able to gradually reduce my part-time income. Now, at age 71, I’m becoming less willing (or able) to work as many hours/month.



My current SS retirement benefit is about $2,200/month (net after the Medicare Part B premium). Dropping that to $1500/month (or $1,315 net after the Medicare Part B premium) would be a serous reduction in my ability to make ends meet and far from what I had planned for.

I don't know anything about your individual planning. All I'm saying one doesn't just get to stop working and live happily ever after simply for reaching a specified age.

If you're 71, you're part of the generation that has benefited the most from Social Security and seems least interested in sacrificing for its continued solvency. If workers are to be expected to pay more and work longer, beneficiaries must be expected to accept less.

 

[Greenbeard]

Its not an "if" its a when. SS is insolvent in the early to mid 2030s. It will have to be reformed. Current recipients and those close to retirement will probably be grandfathered in with the current benefit structure.....the young will have take a hit. Hopefully they didn't go to public schools and end up in food service.

The young’s appetite for taking another hit may be less than you hope.

 

[ttwtt78640]

Sigh

There is no reason for twisting the name of the Trust Funds. Every penny borrowed from the SS Trust Funds has been repaid, with an interest rate set to the inflation rate. Every. Single. Penny.

All of the tax dollars that went into the Trust Fund were supposed to be used to pay for the program. It is now doing what those tax dollars were intended to do: Pay for benefits.

We should note that the Trust Fund was, in fact, a result of the federal government colleting more in taxes than it needed. As a result, it's just a redistribution from past taxpayers to the present.

True, SS was not drawing on the Trust Funds before 2021. But the government has known about this situation for a long time, as the SSA is directed to make annual reports based on the goal of SS being solvent for the next 75 years.

Of course, all of this is actually just a gigantic pile of bullshit, intended to snow the rubes.

There is no genuine fiscal reason to segregate taxes to specific programs. A tax is a tax is a tax, and there is nothing magical about payroll taxes which make it the only valid way to fund SS.

Logically, we should just eliminate all of this nonsense. Payroll taxes should be treated like any other form of revenue; SS should be paid out of general funds, like every other program. This "crisis" is fake. I really don't see why everyone seems to fall for this nonsense.

Other than that being federal law, the (bolded above) assertion is true.

 

[BirdinHand]

The young’s appetite for taking another hit may be less than you hope.

Yep.

Tired of the Boomers screwing everyone younger than them.

 

[tharock220]

Sigh

There is no reason for twisting the name of the Trust Funds. Every penny borrowed from the SS Trust Funds has been repaid, with an interest rate set to the inflation rate. Every. Single. Penny.

All of the tax dollars that went into the Trust Fund were supposed to be used to pay for the program. It is now doing what those tax dollars were intended to do: Pay for benefits.

We should note that the Trust Fund was, in fact, a result of the federal government colleting more in taxes than it needed. As a result, it's just a redistribution from past taxpayers to the present.

True, SS was not drawing on the Trust Funds before 2021. But the government has known about this situation for a long time, as the SSA is directed to make annual reports based on the goal of SS being solvent for the next 75 years.

Of course, all of this is actually just a gigantic pile of bullshit, intended to snow the rubes.

There is no genuine fiscal reason to segregate taxes to specific programs. A tax is a tax is a tax, and there is nothing magical about payroll taxes which make it the only valid way to fund SS.

Logically, we should just eliminate all of this nonsense. Payroll taxes should be treated like any other form of revenue; SS should be paid out of general funds, like every other program. This "crisis" is fake. I really don't see why everyone seems to fall for this nonsense.

Money isn't borrowed from the Trust Fund. The Trust Fund is the US treasuries held by the Social Security administration. You can say all revenue is revenue, but that's not the case by law or the way government accounting sees it. Corporations, universities, non-profits, etc all have sources of income that can only be used to pay for specific items.

And governments all over the world invest pension taxes into equities, real estate, and bonds(even government). Instead Americans were forced to "loan" their money to the general fund then pay the general fund's interest that is owed on their money they loans.

If it sounds stupid, that's because it is.

 

[ttwtt78640]

I don't know anything about your individual planning. All I'm saying one doesn't just get to stop working and live happily ever after simply for reaching a specified age.

If you're 71, you're part of the generation that has benefited the most from Social Security and seems least interested in sacrificing for its continued solvency.

Perhaps not.

https://www.cnbc.com/2019/06/10/its-not-baby-boomers-who-have-taken-the-most-from-social-security.html

If workers are to be expected to pay more and work longer, beneficiaries must be expected to accept less.

I have never supported that (bolded above).

 

[ttwtt78640]

Yep.

Tired of the Boomers screwing everyone younger than them.

Hmm… who helped create the SS surplus which will soon be exhausted?

https://www.cnbc.com/2019/06/10/its-not-baby-boomers-who-have-taken-the-most-from-social-security.html

 

[tharock220]

Perhaps not.

https://www.cnbc.com/2019/06/10/its-not-baby-boomers-who-have-taken-the-most-from-social-security.html

The early recipients received the most disproportionate benefits relative to their contributions, but the Baby Boomer generation, by virtue of its size and longer life expectancy, will receive more benefits than any other generation. There are more Baby Boomers than Xers, so that's unlikely to change.

I have never supported that (bolded above).

Every Social Security recipient who wants their current benefit to continue supports that as well as higher taxes on the working and later retirement ages, even if it's not expressed.

Your generation will be the first to see checks not sent out if the issues aren't addressed.

 

[WorldWatcher]

The best solution is to reduce the monthly payment and implement means testing. The benefit should start at $1500 and drop from there based on your other retirement income. I mean you're retired, what the hell are you paying for anyway?

Let's see:

• Mortgage/Rent
• Home maintenance
• Home Insurance (Property of Rental)
• Property Taxes
• Car (Maintenance and Gas)
• Car Insurance
• Medicare Part B ($185 a month in premiums)
• Medi Gap Insurance (about $150 a month in premiums to help with what Medicare doesn't cover)
• Medicare Part D (Prescriptions, another $150 a month in premiums)
• Long Term Care Insurance if you get sick and have to go into a home so that your children don't get crushed with the bills
• Dental Insurance (which isn't covered by Medicare, you know in case you want be able to chew your food)
• Vision Insurance (which isn't covered by Medicare, you know in case you want be able see)
• Food
• Clothing
• Electricity
• Heating Gas/Oil (so you don't have to freeze in the winter)
• Water to be able to drink, bathe, wash dishes, wash clothes, etc.)
• Sewer (because you don't just get charged for the water going into your home, you have to pay for the water to leave it also)
• Then there might be some extras like a phone to talk to the kids and grand kids, Internet to try to keep engaged

Just couple of things off the top of my head.

WW

 

[WorldWatcher]

IIRC, the SS ‘trust me’ fund’s balance wasn’t decreasing prior to 2021, thus the SS ‘crisis’ situation is a relatively recent occurrence.

That's when the Trust stopped growing.

The knowledge of the liability against the fund and it's inability to meet all future demands are something known for decades.

That knowledge isn't a recent thing.

WW

 

[WorldWatcher]

It is a problem because one of the solutions is to privatize the system which would make Wall Street very rich at the expense of the populous.

Time to post this again.

Wall Street wanting to tap into that retirement bonanza was the reason 401K's exploded as the primary retirement method.

WW
.
.
.
.

 

[ttwtt78640]

The early recipients received the most disproportionate benefits relative to their contributions, but the Baby Boomer generation, by virtue of its size and longer life expectancy, will receive more benefits than any other generation. There are more Baby Boomers than Xers, so that's unlikely to change.

That generation also helped to create the SS surplus (trust fund) by their own (over?)payments, which will soon be exhausted if nothing is done.

Every Social Security recipient who wants their current benefit to continue supports that as well as higher taxes on the working even if it's not expressed.

Are you calling me a liar?

Your generation will be the first to see checks not sent out if the issues aren't addressed.

Yep, I could become a lot poorer in about 8 years.

 

[WorldWatcher]

I don't know anything about your individual planning. All I'm saying one doesn't just get to stop working and live happily ever after simply for reaching a specified age.

I sure can.

(Not on Social Security alone.)

WW

 

[Bullseye]

void

 

[Bullseye]

More people are working and paying payroll taxes. The ratio of working people to retirees has decreased due to the baby boomers retirings and longer life expectancies.

The best solution is to reduce the monthly payment and implement means testing. The benefit should start at $1500 and drop from there based on your other retirement income. I mean you're retired, what the hell are you paying for anyway?

Retirees still eat, need a place to live and many other things.

 

[WorldWatcher]

Retirees still eat, need a place to live and many other things.

They should be required to stop that immediately.

WW