Social security by the numbers

[BrentD]

The trailer was out about 30 years ago. That the wheels on the ponzi scheme were going to start falling off around 2030. By golly, Rip Van Winkle, it's almost 2030!

60 years ago.

 

[SAJ-99]

It’s almost like the federal government should stop reckless spending, and dare I say, be more efficient. At the very least have the balls to fund annual spending/benefits. Shouldn’t be that hard; figure out income, make a budget.

If income and spending budget don’t align, make an adjustment in one or the other. But, the then political price of that is to high, and why bother being responsible with other people’s money when it’s so much more fun to spend freely and reap the short term benefits.

Our politicians (both sides) are too greedy for power and money to quit and the electorate is collectively too stupid to put our foot down. So we’ll kick the can down the road a few more years, slap on a bandaid and let the infection grow.

SS is its own program. Money in, and money out. It's not a "both sides" problem. There are occasional dumb ideas from Dem's but it is clearly caused by the side that hates the concept of a security net and is so against taxes it doesn't want to keep it funded to meet obligations. Reasonable solutions have been proposed and voted down for the last 30yrs. That is why the wall keeps getting closer.

 

[Nick87]

Medical Insurance will be a huge cost in retirement

It already is.

 

[BigHornRam]

SS is its own program. Money in, and money out. It's not a "both sides" problem. There are occasional dumb ideas from Dem's but it is clearly caused by the side that hates the concept of a security net and is so against taxes it doesn't want to keep it funded to meet obligations. Reasonable solutions have been proposed and voted down for the last 30yrs. That is why the wall keeps getting closer.

Reagan propped it up in the 80's to give SS more longevity. People kept living longer, and having fewer children, so the paygo system started to fail. Bush Jr touched the 3rd rail and got electrocuted, and no one, R or D, has wanted to touch it since. Can you list any of these "reasonable" solutions that were voted down?

 

[SAJ-99]

Can you list any of these "reasonable" solutions that were voted down?

No. You need to learn how to use google.
Changes in 1980's helped. The Boomers saw their future reality. We need something similar now.

Here is a start. Social Security Enhancement and Protection Act of 2025 (I think there was one in 2023 too) and Social Security Guarantee Act are still sitting out there. I think both need some work, but they are reasonable, which is why they sit there. The OBBB cut SS taxes, which is fine if you are a current recipient but it cuts future receipts for them and everyone else. This is part of the reason why the "run out of money date" inched closer, so not a solution. It's like trying to put out the fire with gasoline.

 

[Bonasababy]

Too aggressive for people further along but with 25+ years left I don’t even put it in my calculations. I’m sure the government will do something when they can’t kick it down the road anymore but I sure don’t want to be relying on it as a required piece of my income.

Its kind of an untouchable rail in politics to try and fix it. I recall first hearing about a looming crisis back in the 1980's. Dubya made it a campaign issue that in the end didn't go anywhere. Every since no one has been willing to do anything with plans to fix it--even talking about it can doom the future of a politician. AARP--of which I am now a member--routinely moblizes hundreds of thousands of political contacts when any change is threatened.

A glimmer of hope though--the ranks of the retired are growing fast. Once they hear and actually grasp the impact in their minds--that it isn't going away but they will not be able to get as much money from it, money most of them are counting on and need--there would likely be new pressure to start a fix or a kick the can down the road plan that hasn't been there before.

 

[Irrelevant]

It’s almost like the federal government should stop reckless spending, and dare I say, be more efficient. At the very least have the balls to fund annual spending/benefits. Shouldn’t be that hard; figure out income, make a budget.

If income and spending budget don’t align, make an adjustment in one or the other. But, the then political price of that is to high, and why bother being responsible with other people’s money when it’s so much more fun to spend freely and reap the short term benefits.

Our politicians (both sides) are too greedy for power and money to quit and the electorate is collectively too stupid to put our foot down. So we’ll kick the can down the road a few more years, slap on a bandaid and let the infection grow.

Warren Buffett had a good solution for this. If Congress can't pass a balanced budget, no one is eligible for re-election.

WHile not specifically directed at SS, you could say a similar approach is warranted.

 

[Bonasababy]

Reagan propped it up in the 80's to give SS more longevity. People kept living longer, and having fewer children, so the paygo system started to fail. Bush Jr touched the 3rd rail and got electrocuted, and no one, R or D, has wanted to touch it since. Can you list any of these "reasonable" solutions that were voted down?

Reagan just implemented most of the recommendations from a bi partisan working group. Shortly after a few things were backtracked on though.

There have been a number of working groups over the years since then, but it's became untouchable so nothing gets done.

I do think a blue takeover at the national level could push reform and fixes that delay the problem if not fix it to fruition. But to voters its not a red or blue issue. Dangerous politically to anyone.

Reagan did a bit to tax the wealthy's SS Payments at a higher rate but the disparity between them and others is a place where hay can be made IMO.

 

[SAJ-99]

It already is.

Like I said, update your retirement plan because it will get worse. Health Care businesses can't really take a 10-15% cut in Medicare payouts because a lot of them are already in the red. Retirees will need supplemental insurance. I don't even want to think of those in need of assisted living. I think the goal is for most Americans to die at work.

 

[Irrelevant]

It already is.

We go with pay-to-play for almost everything now. Because we have a HDHP it's much cheaper. We then just use insurance for the catastrophic coverage. But it's a bit of a gamble as you never accrue anything towards meeting your deductible.

 

[Nick87]

We go with pay-to-play for almost everything now. Because we have a HDHP it's much cheaper. We then just use insurance for the catastrophic coverage. But it's a bit of a gamble as you never accrue anything towards meeting your deductible.

I've got employer paid insurance through retirement. If I were in your shoes though I cant say that's a terrible plan.

 

[Nick87]

think the goal is for most Americans to die at work.

Thats 100% the goal. Huge win for the insurance companies, businesses and unions alike and so on. Most people can't see that coming though. At least I don't think they do.

 

[BigHornRam]

We need to pass a bill, to form a commission on how to make Social Security more solvent. I will be dead before they get this figured out!

Social Security and Medicare Update: Republican Proposes Bill to Consider Major Changes - Newsweek https://share.google/oCRzYP5CLal24MpFB

 

[The_Jim]

We go with pay-to-play for almost everything now. Because we have a HDHP it's much cheaper. We then just use insurance for the catastrophic coverage. But it's a bit of a gamble as you never accrue anything towards meeting your deductible.

This is where we are at too. Its forced us to shop around, get second opinions, etc. We have gotten much better service because of that.

 

[Irrelevant]

We need to pass a bill, to form a commission on how to make Social Security more solvent. I will be dead before they get this figured out!

Social Security and Medicare Update: Republican Proposes Bill to Consider Major Changes - Newsweek https://share.google/oCRzYP5CLal24MpFB

I liked everything in that article
“They just cut Medicaid while we're ‘studying’ Medicare solutions. That's Washington in a nutshell. You can't fix a problem while you're actively making it worse.
...
“This is largely performative. It is no secret what will save Social Security and Medicare—it must be some mix of increased funding and decreased benefits," Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek. "In the real world, that means shifting the federal budget, raising income taxes or taxes on benefits, and reducing benefits in any number of ways, such as pushing back Full Retirement Age, means testing, or changing the benefit formula."