Social Security bosses reveal potential
massive cut to retirement income as Congress
desperately scrambles to not run out of cash
Daily Mail,
by
Tilly Armstrong
Original Article
Posted By: pc1eszm,
6/14/2024 3:43:25 PM
The head actuaries for Social Security and Medicare have testified before a House committee about looming financial challenges which could see funds run short by 2035.
Social Security relies on its trust funds to provide monthly benefit checks to around 70 million Americans.
But an aging population is pushing up the cost of the program as a smaller share of people are paying into it, and spending is outpacing income.
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Reply 1 - Posted by:
Phantomll 6/14/2024 3:52:13 PM (No. 1737187)
Quit all the payments to illegals!
152 people like this.
Reply 2 - Posted by:
LC Chihuahua 6/14/2024 3:54:09 PM (No. 1737188)
Stop spending money on Ukraine and a dozen other 'wars'.
Stop spending money on climate change and social justice.
Stop spending money on Congressional pay raises for themselves and their staffs.
Cut Fauci's budget to zero!
There are probably hundreds of other cuts before Social Securities and Medicare. There are priorities.
167 people like this.
Reply 3 - Posted by:
Bur Oak 6/14/2024 4:03:20 PM (No. 1737192)
They say social security payments are made out of a trust fund. This is a lie. There is no trust fund. Congress spends withheld social security payments when it arrives if not before.
103 people like this.
Reply 4 - Posted by:
jalo1951 6/14/2024 4:13:21 PM (No. 1737195)
But we have $ BILLIONS for Ukraine in perpetuity. And $ BILLIONS for ILLEGALS. We have money enough to throw at anybody and everybody. So what am I missing?
119 people like this.
Reply 5 - Posted by:
DVC 6/14/2024 4:17:04 PM (No. 1737197)
My bet is that there will be a process of 'adjustments' to SS payments over time. Some will be raising the age you can start, others lowering payments for new SS recipients, and other 'trimming', not a sudden
stop of all checks.
My wife and I looked closely at the stability (or lack thereof) of the SS system and planned our investments and other retirement strategies to be able to have a good retirement even if SS isn't available to us. My theory that I have always operated on is that at some point the SS boys will just look at your other assets and if you are not destitute, will just cut you off. So, as they probably start by saying "Sorry, you don't "deserve" this SS" They'll decide this even though we paid in more than most, maxing out the SS payments almost every year of our 40+ year working lives.
I sincerely hope this won't happen, but like multiple OTHER predictable, foreseeable catastrophes
that we have planned to be able to survive, we'll survive this one. I understand very well that lots of
folks bought the story line and have put all their eggs in the SS basket. I very much hope that those
who totally depend on SS get to have that continue. If my wife and I get cut off, we won't like it, but
we will be OK.
42 people like this.
Reply 6 - Posted by:
singermom9 6/14/2024 4:35:07 PM (No. 1737210)
Cut all the NGO's that bring in all the ILLEGAL IMMIGRANTS.
Get rid of all the government dollars to fund ALL ILLEGAL IMMIGRANTS.
DEFUND Jack Smith
DEFUND the Education Dept and FBI, CIA, NPR, THE Arts and DOJ.
There, THAT is a start.
96 people like this.
Reply 7 - Posted by:
singermom9 6/14/2024 4:36:19 PM (No. 1737212)
NOT 1 more penny for UKRAINE-it all comes back in laundered money to dems anyway and ALL of Zelinski's generals are NOW Millionaires
60 people like this.
Reply 8 - Posted by:
stevendm 6/14/2024 4:37:02 PM (No. 1737215)
SS is not an "entitlement". I have been forced to pay into it for over 50 years. Poop is going to hit the fan if they cut back on trhis.
68 people like this.
Reply 9 - Posted by:
Socio 6/14/2024 4:39:02 PM (No. 1737216)
Hey congress I have an idea, how about go get back all that taxpayer money you gave away to Israel and Ukraine!
We are going to have a massive homeless elderly problem when these benefits run out, likely the blood of millions of elderly on the hands of our filthy corrupt thieving congress as they die in the streets!
34 people like this.
Reply 10 - Posted by:
Mushroom 6/14/2024 4:50:33 PM (No. 1737221)
#5, There already was an adjustment. Had you forgotten how retirement ages are different based on birth year?
Just like being in the Military, only the Government can keep moving the goal posts to suits it's desires.
And while I am at it, have you an accounting of all that funding, because we sure don't?
33 people like this.
Reply 11 - Posted by:
judy 6/14/2024 4:56:36 PM (No. 1737226)
They always manage to find billions to fund illegals with 5 star hotels, big $ food vouchers & free food…..
55 people like this.
Biden is certainly to blame for the high inflation and COLA increase which depleted the fund even faster.
28 people like this.
Reply 13 - Posted by:
mc squared 6/14/2024 5:33:22 PM (No. 1737236)
Payable in Pasos only.
6 people like this.
Reply 14 - Posted by:
RobertJ984 6/14/2024 5:39:03 PM (No. 1737239)
How come there is plenty of money for welfare?
41 people like this.
Reply 15 - Posted by:
3XALADY 6/14/2024 5:42:21 PM (No. 1737241)
Not as much tax money coming in because the democrats pay the goobers to stay home and collect disability rather than go to work and have to pay taxes. Also, so many businesses had to close because of the government induced Chy-na crud so fewer taxes paid. Close to $200 billion to Ukraine. Don't know how many billions to Israel. If a country sneezes, Uncle Sugar sends it some money. Now government is taking care of the 12 million illegals. No wonder there is not enough money to go around, so let's just short change the old folks. They are used to it.
26 people like this.
Reply 16 - Posted by:
snakeoil 6/14/2024 5:50:46 PM (No. 1737245)
By that date I'll be wondering why the scenery inside my coffin never changes.
12 people like this.
Reply 17 - Posted by:
DVC 6/14/2024 6:18:30 PM (No. 1737248)
Good point, #11, that is why I assumed that they'd do it again. Yep, they lied. Promised retirement, and it will collapse.
The Chileans under Pinochet created a literally world's best retirement system. It uses FREE MARKET actual investments for mandatory social security contributions, instead of "government bonds" that are used here.
The problem with "government bonds" lies in what a government bond actually is. It is a piece of fancy paper that is literally an IOU. So, all the money in excess of this year's SS expenditures is "invested" in government bonds. What does this really mean? Well, the government takes the money, puts an IOU in a filing cabinet, solumnly swearing to repay that money at some future date......and spends it.
So, when the "future date" comes, the government takes the excess cash that they have from this year's tax revenues and use that to repay these bonds. But....what if there is NEVER, EVER any "excess tax revenues" but endless tax deficits.....OOPS. Those "government bonds" become so much toilet paper.
The Chilean system puts the money into commercial stocks and in addition to actually existing in the future, they GROW and gain interest. This one change makes the average Chilean janitor a very well off man when he retires, not wealthy, but definitely not poor. And people who put more in, get more out, because their INDIVIDUAL ACCOUNT is invested for them in low risk commercial stocks and bonds and they gain in proportion to what they put in.....with interest.
SS is a crock, unstable, unworkable and ultimately all the promises are lies. All those "safe secure government bonds" are worthless because of deficit spending making them un-payable.
31 people like this.
Reply 18 - Posted by:
jeffkinnh 6/14/2024 6:23:29 PM (No. 1737250)
Almost everything else in government should be SIGNIFICANTLY CUT before Social Security and Medicare are. SS is paid into ahead of retirement. The ONLY reason that the funds are depleted is that politicians looted the funds for government giveaways (to buy votes) and issued IOU bonds.
Here's a thought. What would have happened if all the money you paid into SS was held for you in a private, account, that could be invested in safe things like high grade corporate bonds. You would have been making 6% earnings for the last 45 years and received far more than the pittance that SS gives you. PLUS, it would be YOUR money once you retired. The governments mismanagement would have no control over YOUR money. The reason that SS was placed in a government fund was SPECIFICALLY so that the government could play with the money that was supposed to be yours. Since SS was created, they have increased deductions over and over to "save" it. But because the government was STILL in charge of the money, it will NEVER be safe.
The money you get from SS is already taxable. Why? You paid most of it in after paying taxes on it. Only funds exceeding what you contributed should be taxable. We are paying taxes ONLY because government continues to overspend and MUST collect these taxes to keep the government from collapsing.
Now they are about to pull the plug. The first thing will be, for people who were smart and set extra money aside to have a better retirement, 403Bs, 401Ks, stocks, etc., they will be declared to not need SS because they have other funds. Your SS funds will be stolen to keep SS from collapsing.
This outcome was inevitable because our government is despicably corrupt and the people who run it are only interested in their own power and wealth.
31 people like this.
Reply 19 - Posted by:
Strike3 6/14/2024 6:30:18 PM (No. 1737253)
The Ponzi scheme has finally reached its apogee. There is no recovery from this other than mass murder of senior citizens. Nah, they wouldn't do that, would they?
21 people like this.
Reply 20 - Posted by:
Mcscow sailor 6/14/2024 6:44:08 PM (No. 1737260)
This is no surprise to those who have been listening fo decades. There are just two questions. 1). Is this a temporary “hole” that will heal after the baby boomer flush. 2). What excessive payments can be trimmed (hint, illegals, disability to slackers). It really is no different than any social program where opm is available, do aéra shrink and donees increase. When opm runs out, there is a “crisis”.
10 people like this.
Reply 21 - Posted by:
JackBurton 6/14/2024 7:19:42 PM (No. 1737290)
Bush (W) tried to fix this. 20 years ago. When it would have made a real difference.
Fools.
19 people like this.
Reply 22 - Posted by:
Kate318 6/14/2024 7:34:26 PM (No. 1737304)
No, an aging population is not pushing up the cost of the program. That aging population put their money into that fund with a promise that they would get it back. Politicians on both sides raided it for their own purposes and have run it like a Ponzi scheme. Stop sending money abroad, specifically to enrich the Ukraine pension funds and we might just make it.
33 people like this.
The greatest Ponzi scheme ever devised?
19 people like this.
Reply 24 - Posted by:
whyyeseyec 6/14/2024 8:13:48 PM (No. 1737318)
SS payments come directly from the National Treasury. It's money in money out. Congress is running scared because they will have less funds to squander going forward. The only thing that needs to be cut is the size of the fed govt and all their wasteful spending. Raise your hand if you think it was wise for the Uniparty to hire 87000 new IRS agents. That alone will cost billions to fund in perpetuity before they shake down small businesses for pennies on the dollar. Every move Congress makes is a mistake~
19 people like this.
Reply 25 - Posted by:
tangles 6/14/2024 8:16:09 PM (No. 1737319)
Ever wonder why schools are so quick to say a kid has the alphabet diseases? They get extra $ to educate them from SS and the drug addict mama does, too!
12 people like this.
Reply 26 - Posted by:
Lawsy0 6/14/2024 8:16:58 PM (No. 1737320)
Cut congressional salaries, then cut congressional staff salaries, then cut congressional expense budgets. Then boot the UN out of New York and repurpose that building for the homeless. Maybe let congressmen and women answer their own phones for a change.
20 people like this.
Reply 27 - Posted by:
red1066 6/14/2024 8:21:10 PM (No. 1737321)
Those in charge of the SS fund and those in Congress have known for decades that the baby boom generation which contributed massive amounts of money to the SS fund for decades was going to retire someday. Instead of investing that money, Congress invaded that fund to pay for government programs not related to SS. They basically kicked the can down the road. Something those in charge in D.C. are experts at doing. Now the chickens are coming home to roost, and they expect retiring baby boomers and those generations coming after to bail them out. The ones who stole from SS knew at the time they would not be around take the blame, so stealing the money wasn't really an issue for them.
12 people like this.
Reply 28 - Posted by:
DanvilleBill 6/14/2024 8:45:20 PM (No. 1737333)
#5, they'll justify the SS cuts to individuals by calling it "means testing"
Even though it's our own money.
We have been truly betrayed by our politicians...both parties.
19 people like this.
Reply 29 - Posted by:
DVC 6/14/2024 9:16:01 PM (No. 1737352)
Exactly right, #5, that's exactly what I figured outv35 years ago and used when planning our retirement.
7 people like this.
Reply 30 - Posted by:
Heil Liberals 6/14/2024 9:35:04 PM (No. 1737362)
Medicare, Interest, and Obscene military spending are what is bankrupting our nation. Social Security has been kicked down the road for decades now. I remember when it was supposed to run out of funds by then end of the 1980s, but here we are.
8 people like this.
Reply 31 - Posted by:
DVC 6/14/2024 11:54:34 PM (No. 1737411)
Sorry, #30 was meant for #29.'
1 person likes this.
Reply 32 - Posted by:
mifla 6/15/2024 5:27:56 AM (No. 1737492)
Inflation has killed the lower class and the middle class is living off of their credit cards.
Previously retired senior citizens are going back to work (if they are able) to pay their bills.
Lower birth rates and rampant government spending is bankrupting Social Security.
Entitlement programs are being overwhelmed by those pushed into poverty.
The answer to this mess - the same as always. Raise taxes!
A financial reckoning is coming. It won't be pretty.
12 people like this.
Reply 33 - Posted by:
rushie 6/15/2024 7:45:34 AM (No. 1737544)
I recall “disability judges” handing out SS benefits to everyone that applied.
3 people like this.
Reply 34 - Posted by:
Venturer 6/15/2024 8:14:08 AM (No. 1737559)
There is no Social Security Trust, the government "borrowed" that years ago.
Notice there is never any talk of cutting foreign aid, or cutting welfare, or other entitlements.
No talk of cutting the education budget, which is bloated now.
But screwing over the earned benefits of elderly Americans is fine.
8 people like this.
Reply 35 - Posted by:
skacmar 6/15/2024 8:29:06 AM (No. 1737569)
The Money we send to Ukraine goes to cover 100% of their pension system. Why can the US pay foe Ukraines retirees but not ours. Also, Congress knew about the SS shortfalls for years. They are just too cowardly to take any actions or deal with any pushback the may receive.
13 people like this.
Reply 36 - Posted by:
jkb 6/15/2024 9:17:06 AM (No. 1737609)
But Ukraine...
2 people like this.
Reply 37 - Posted by:
stablemoney 6/15/2024 9:26:43 AM (No. 1737613)
Nonsense. The government can print all the money it wants. The office of engraving and printing is the only office that runs 24/7/365, and does not work from home.
2 people like this.
Reply 38 - Posted by:
udanja99 6/15/2024 9:28:38 AM (No. 1737614)
#5, we did the same. But all of those investments won’t help if the economy truly tanks like it did in 1929. That’s my biggest fear if Pedo Joe steals the next election.
7 people like this.
Reply 39 - Posted by:
janjan 6/15/2024 9:32:24 AM (No. 1737618)
I don’t consider SS an entitlement exactly, but most people are paid out far more than they put in. Regardless, the payments people make go into the general fund and get spent on anything Congress chooses. Targeting SS for massive cuts to make up for Congress’s profligate, irresponsible spending is a scare tactic they’ve been using for years. There are many, many other places they can cut spending. They’d better get started.
5 people like this.
Reply 40 - Posted by:
Zigrid 6/15/2024 9:51:28 AM (No. 1737635)
Com'on...another scare tactic just in time for the election?
4 people like this.
Reply 41 - Posted by:
econoclast 6/15/2024 10:27:31 AM (No. 1737649)
"Social Security bosses reveal"? This has been public knowledge for years. I started my social security in 2019 at 62 rather than wait till I turn 70 in 2027. I figured better to get 15-16 years of a lower rate than 7-8 years of full rate with a drastic reduction in 2034. Charles Ponzi would be so proud.
3 people like this.
Reply 42 - Posted by:
NotaBene 6/15/2024 12:20:24 PM (No. 1737701)
The influx of Illigal Alien Democrats is swamping the Social Security System. Cloward-Piwen-Clinton plan coming to fruition.
2 people like this.
Reply 43 - Posted by:
cor-vet 6/15/2024 1:08:10 PM (No. 1737751)
Just one of O'Bidens Zelensky giveaways would refund SS!
2 people like this.
Reply 44 - Posted by:
moebellini3 6/15/2024 2:26:51 PM (No. 1737806)
This has nothing to do with an aging population but more to do with mismanagement. Millions of people are receiving benefits from social security who have never paid a dime into it. Congress is responsible for this problem and they are the ones who need to repay what they have stolen.
2 people like this.
Reply 45 - Posted by:
rikkitikki 6/15/2024 3:22:45 PM (No. 1737826)
Here's an idea: demand that any cut to Social Security payments be mirrored in equal cuts to Congress' pay.
Or, better yet, double-cuts, to punish Congress for its malfeasance.
1 person likes this.
Reply 46 - Posted by:
baxter1 6/15/2024 3:50:40 PM (No. 1737843)
They cut my SS by half in January and getting an answer as to why is proving to be impossible.
1 person likes this.
Reply 47 - Posted by:
rochow 6/15/2024 9:19:15 PM (No. 1737954)
Stop giving a dime to Zelinski and illegals.
1 person likes this.
Reply 48 - Posted by:
MickTurn 6/15/2024 10:20:15 PM (No. 1737971)
If the Congress and Administration doesn't fix this they will see ALL HELL break lose, ALL of them will be inside the Dumpster Fire they created and NO ONE will help them!
0 people like this.
Reply 49 - Posted by:
Dodge Boy 6/16/2024 4:39:49 PM (No. 1738351)
Yep, the chickens are coming home to roost. We all knew this day was coming. Our government goodies are on borrowed time. I have no idea what is keeping the banks afloat.
Yes, it is critical to not be dependent on SS alone to sustain yourselves. Have a backup plan.
In our case, my wife and I chose to live 100 percent off of SS as long as possible so I could live off the SS dollars that I contributed to the system as a wage earner. We are nearly there. Keeping other assets invested in the stock market is dangerous at best. Still doing it, but I don't like it.
Best advice - shift some assets into things of intrinsic value. Live in a small town or out in the bush so if/when the poop hits, you are competing against a lot fewer people to acquire basic goods. The important things are of course, food, water, energy, security (guns), barter ability, community relationships, and ways to preserve wealth (gold and silver).
Consider not living off of your SS for say three months and understand how your alternative resources would need to work for you if these become your main source of income. Strange as it may seem, keeping as much of your wealth outside of the financial system brings needed benefits. Is your bank "safe" from failure?
0 people like this.
Comments:
This is the LAST thing that should be cut! Cut all the budget garbage first - this is NOT an entitlement. Retirees paid into this mess of a system involuntarily. Congress stole from this system - they need to return the money they've taken WITH INTEREST. Likely to never happen, but one can dream, right?