Today’s older workers may see the first cuts to Social Security benefits

[libertybele]

I really feel for our children who have paid into the 'system' since they entered the workforce as chances are they aren't going to see a dime of what Uncle Sam decided to take from them.  Secondly, chances are they will continue to see the amount deducted from their checks for SS rise in order to help offset those already claiming benefits.

Today’s older workers may see the first cuts to Social Security benefits

Many young Americans say they don’t expect to get Social Security when they retire, but it’s the older workers of today who may see the first cuts to their benefits.

The Congressional Budget Office released an updated budget outlook on Wednesday, originally published in July, to reflect the impact the pandemic has had on the economy. In the report, the agency said the budget deficit will reach a record $3.3 trillion this year — and $13 trillion over the next decade. The national debt, which is projected to be 98% of gross domestic product this year, is also expected to surpass the levels of World War II next year, when it’s expected to reach 104% in 2021.

Among the numerous adverse effects of the current crisis is the steep incline in the expected insolvency dates for Social Security and Medicare’s programs, which are expected to run out of money in 11 years compared with the previous projection of 15 years.

The programs rely heavily on payroll taxes. The CBO expects reported receipts from payroll taxes to increase this year despite record levels of unemployment in recent months, but that will change in subsequent years, it said. Lower interest rates and price levels will also reduce the cost of Social Security and other related health care programs, according to the Committee for a Responsible Federal Budget, which did an analysis on CBO’s updated outlook.

Still, Social Security is in trouble. The two trust funds that support the program, which pays out retirement benefits as well as disability and survivorship benefits, are already at risk of running out of money within the next two decades. With the impact of the pandemic under review, the CBO estimates the insolvency date for Social Security Disability Insurance to be 2026, and the Social Security retirement program, known as Old-Age and Survivors Insurance, by 2031. Medicare Hospital Insurance faces insolvency by 2024 if nothing is done to rectify these projections.

“In other words, today’s youngest retirees will face a sharp 25% drop in their benefits when they turn 73,” the CRFB said in an analysis about the CBO’s report. The cut is attributed to less tax revenue, an aging population that will inevitably claim Social Security benefits and trust fund assets that grow at a lower interest rate. ..................

https://www.marketwatch.com/story/todays-older-workers-may-see-the-first-cuts-to-social-security-benefits-2020-09-03?mod=home-page

[skeeter]

As soon as critical mass is met - that is, the younger (less white) salaried demographic - benefits to to older (more white) SSI recipients will be cut. Not before.

Its just the way it is in our new, diverse, tribalistic society.

[Smokin Joe]

Ducky, just ducky. I have paid into that crap since I was 14 (half a century), and now they want to cut the benefits by the time I can draw them. Just give my money back.

[sneakypete]

Social Security is and will remain in trouble because the Dims see it as a slush fund they can dip into in order to buy votes.

Cut it back with an unbreakable law that states that SS monies can ONLY be spent on people who have paid into the Trust Fund,and the problems go away.

BTW,somebody needs to remind the vote-buying Dims that it is a TRUST Fund,not a Slush Fund!

[jmyrlefuller]

Ducky, just ducky. I have paid into that crap since I was 14 (half a century), and now they want to cut the benefits by the time I can draw them. Just give my money back.

It's gone. Long gone. Paid out to retirees before you—and no, it wasn't "stolen." It was borrowed against, then returned with interest from the general fund.

[Smokin Joe]

It's gone. Long gone. Paid out to retirees before you—and no, it wasn't "stolen." It was borrowed against, then returned with interest from the general fund.

Oh? When was it returned?

[jmyrlefuller]

Oh? When was it returned?

In every federal omnibus bill. The government hasn't defaulted on any of its bonds yet, so they must still be paying them—even if it means taking out more bonds to do it.

[libertybele]

It's gone. Long gone. Paid out to retirees before you—and no, it wasn't "stolen." It was borrowed against, then returned with interest from the general fund.

Wasn't stolen?? What planet have you been living on??  Social Security is a MANDATED tax!! The government forces you and anyone else that receives a paycheck to pay taxes deducted from the wages that they have earned AND then at the end of the year you are taxed again if you have not paid enough.

Under the 16th amendment taxes were proposed in order to pay for war debt but it wasn't ratified till much later  and obviously not for war debt as originally proposed.  Ratification of the Sixteenth Amendment to the United States Constitution:

    The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

 By February 1913, 36 states had ratified the change to the Constitution. It was further ratified by six more states by March. Of the 48 states at the time, 42 ratified it. Connecticut, Rhode Island, and Utah rejected the amendment; Pennsylvania, Virginia, and Florida did not take up the issue.

$$ deducted from your paycheck is supposed to pay for social security benefits and medicare benefits - BOTH are mandated by the government.  So ... if those $$ are no longer available to you to pay for those benefits than that $$ taken from your check is stolen.

[Smokin Joe]

Wasn't stolen?? What planet have you been living on??  Social Security is a MANDATED tax!! The government forces you and anyone else that receives a paycheck to pay taxes deducted from the wages that they have earned AND then at the end of the year you are taxed again if you have not paid enough.

Under the 16th amendment taxes were proposed in order to pay for war debt but it wasn't ratified till much later  and obviously not for war debt as originally proposed.  Ratification of the Sixteenth Amendment to the United States Constitution:

    The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

 By February 1913, 36 states had ratified the change to the Constitution. It was further ratified by six more states by March. Of the 48 states at the time, 42 ratified it. Connecticut, Rhode Island, and Utah rejected the amendment; Pennsylvania, Virginia, and Florida did not take up the issue.

$$ deducted from your paycheck is supposed to pay for social security benefits and medicare benefits - BOTH are mandated by the government.  So ... if those $$ are no longer available to you to pay for those benefits than that $$ taken from your check is stolen.

Precisely. All those I.O.U.s in the "Social Security Lockbox" aren't worth the paper they weren't printed on.

[IsailedawayfromFR]

It's gone. Long gone. Paid out to retirees before you—and no, it wasn't "stolen." It was borrowed against, then returned with interest from the general fund.

Do you really believe this Algore talking point?

THERE IS AND NEVER HAS BEEN ANY MONEY SAVED IN SOCIAL SECURITY.

The 'Trust Fund' is a lie.

IT IS A PONZI SCHEME.

[Bigun]

Do you really believe this Algore talking point?

THERE IS AND NEVER HAS BEEN ANY MONEY SAVED IN SOCIAL SECURITY.

The 'Trust Fund' is a lie.

IT IS A PONZI SCHEME.

But a PONZI scheme the fedgov runs!  Don't YOU try it or you will get the Bernie Madoff treatment!

[jafo2010]

Sen Bob Dole when he ran for POTUS claimed they fixed Social Security and Medicare in 1984. 

I think everyone here knows the fix for SS and Medicare will happen only when the Congress has no choice but to act.

That will not happen for a couple few years, at best.  If Trump gets re-elected, I think that time line is extended further into the future.

I just turned 67, and I have not yet started collecting Social Security.  I would like to hold off until 70, but my current plan is to start when I am 68.5 years of age, assuming I make it that far.  I just cannot give up $150,000 in benefits to wait until age 70.  And I suspect they will lower payments at some point about ten years from now, by as much as 30%. 

Time will tell.