$700 billion will disappear from Social Security's coffers in next decade

[Yo_Mama_Been_Loggin]

For nearly eight decades -- it began payouts in 1940 -- Social Security has been a financial rock for a number of retired workers. Today, it's a program that more than 60% of all aged beneficiaries rely on to provide at least half of their retirement income. And, looking forward, Gallup's April 2018 survey suggests it's a program that 84% of nonretirees will need in some capacity to make ends meet during retirement.

But for as great as Social Security has been for retired workers, the disabled, and survivors of deceased workers, the nation's most important social program is about to hit its biggest speed bump in history.

The newly released annual report from the Social Security Board of Trustees highlights some very big changes that are now underway with the program. Beginning in 2018, and continuing with each passing year, through 2034, Social Security will be paying out more in benefits than it's generating in revenue. That hasn't happened since prior to the reforms passed during the Reagan administration in 1983.

In 2018, an estimated $1.7 billion more in benefits will paid to eligible beneficiaries than is collected in revenue via the payroll tax, interest earned on its asset reserves, and the taxation of benefits. Though this net cash outflow will lessen modestly in 2019, it will reaccelerate in a big way in 2020 and beyond, according to the intermediate-cost model, as shown (all figures are estimated):


https://www.msn.com/en-us/money/retirement/dollar700-billion-will-disappear-from-social-securitys-coffers-in-next-decade/ar-AAzC649?li=BBnb7Kz

[sakabatou]

1. Trump screws those that rely on SS over

[exboyfil]

3. That has been how it was designed all along

If you want to find fault, then the money that was spent for the Iraq War could have been used to purchase the sovereign debt of other countries or other assets or to pay down the national debt.

[exboyfil]

2. A bigger question - will it?

That money will have to come from the General budgett in the form of increased taxes, reduced spending, or additional borrowing.

[ladjf]

4. But the money won't come from the very rich greedy bastard, sickos. nt

[Hoyt]

5. President Obama tried to address this issue, but was shouted down and heavily criticized.

Now, unless something good happens in November, we are left with GOPers to come up with a solution.

While increasing the cap will help, it won't solve the entire problem AND GOPers are more likely to pursue other hurtful alternatives. They are not going to increase taxes by what would be a 12 percentage point increase for those earning over roughly $129,000 by enough to make a big dent in the problem.

I guarantee, we'll sit here and do nothing right up until the last minute when the law will require a 25% or so cut in benefits to deal with the deficit. Maybe something will be done at that point, but it might not be as harmless as we want.

We should have listened to Obama in a lot of ways.

[lostnfound]

6. Mitigate income inequality (living wage) and social security outlook will improve

Roughly the first $110,000 gets taxed, but higher levels — executives — as well as capital gains or dividends do not.

Incentivize companies to divvy up the pie in a way that raises wages for people making less than that amount, and social security outlook will improve. For every $1 per hour raise, there’s 12 cents that goes into the social security fund.

Not to mention raising the cap.

[Major Nikon]

7. This is by design

Since the inception of SS it was a pay-as-you-go system meaning the deductions from those working paid the benefits of recipients. In the 80’s it was recognized the baby boomers would stress that method so the trust fund was designed to get us over that hump. Eventually the baby boomers will be gone and the trust fund will have served its purpose.

[ret5hd]

8. Exactly. SS was intended to have essentially a zero balance.

What gets the Pugs so riled up is the fed govt for decades used the huge balance, accumulated by and for the boomers, as a cushion to keep from raising taxes. In the near future the pugs will be forced to admit that yes we do need to raise taxes and dammitall, the only ones that got any are the rich!!!

[a kennedy]

9. So the baby boomers have how long to use this S.S. fund??

what’s the age group you’re talking about?? I’m 67 so how long is it solvent?? Better start looking for a Walmart greeter job eh?? I HATE MALL-WORT

[Major Nikon]

11. 2034

By then the youngest boomers will be 73 and the vast majority of them will be dead. Anyone who tells you SS will ever be insolvent is lying to you. SS will always have a revenue stream from those who are paying FICA.

[stuffmatters]

10. So Scrap the Cap & Soc Sec exists in perpetuity. Always state the simple,obvious solution

The income ceiling subject to soc sec withholding (paid by both corps & employees)) ends somewhere around $130,000 Repugs , Wall Street. Corps have fought fiercely to keep it there. All the while fear mongering over the "inevitable" collapse of soc sec. in order to push their beloved, brutal Austerity.
To me it's sheer RW/Wall Street propaganda if any article spreads this story of Soc Sec's imminent shortfalls/implosion without showcasing front and center the clear,simple and economically just solution to keeping full social security benefits, even increasing them for generations to come.

Just Scrap The Cap.

[Major Nikon]

12. Not exactly an easy solution

Benefits are also capped by virtue of the income cap. Raise one and the other follows unless the benefit formula is also changed. If you cap the benefit formula without capping the deduction limit, SS now instantly transforms into a welfare program which could very well be a poison pill given the current irrational fear associated with that word.

[stuffmatters]

13. I trust Eliz Warren & Sherrod Brown on this one

[The Mouth]

14. Question-

Was the Disability portion ever part of the original plan?

I mean it seems to me (I could be wrong) that Disability should be a separate program as far as funding and financing; more of a general societal cost, while the retirement part was designed to be (sort of ) self funding.

Thanks

[ansible]

15. Anyone seriously counting on SS when they get older is a fool

Always have a backup plan for your retirement and plan ahead for the worst.